World's Largest CPO Producers, Indonesia and Malaysia Agree to Fight Palm Oil Discrimination

President Jokowi and Malaysian Prime Minister (PM) Anwar Ibrahim agreed to cooperate in combating discrimination against palm oil (crude palm oil/CPO) by the European Union.

PM Anwar Ibrahim stated this in a press statement after meeting with President Jokowi at the Bogor Presidential Palace on Monday (9/1/2023).

"Regarding the issue of palm oil discrimination by the European Union, the President and I agree that Malaysia and Indonesia should continue to cooperate in addressing palm oil discrimination at the international level," said PM Anwar, as reported by *Kompas.com*, Monday (9/1/2023).

According to a report by Indonesia for Global Justice (IGJ), the European Parliament has implemented policies to reduce the use and import of palm oil, including from Indonesia and Malaysia.

This is because the EU considers the palm oil industry to contribute to deforestation, habitat degradation, corruption, and business practices that often violate workers' rights or other human rights.

However, according to PM Anwar, the EU's actions constitute discrimination that does not reflect the sustainability of the palm oil industry, particularly in Malaysia and Indonesia. He also considers the EU's stance to be contrary to free trade commitments.

According to data from the United States Department of Agriculture (USDA), Indonesia and Malaysia are the world's largest palm oil producers.

The USDA projects that Indonesian CPO production could reach 45.5 million metric tons (MT) in the 2022/2023 period, and Malaysian CPO production 18.8 million MT.

Combined, the Indonesia-Malaysia duo controls 83% of global CPO production, which is estimated to reach 77.22 million MT in the 2022/2023 period.

The following are the details of the USDA's projected global palm oil production for the 2022/2023 season:

1. Indonesia: 45,500,000 MT
2. Malaysia: 18,800,000 MT
3. Thailand: 3,260,000 MT
4. Colombia: 1,838,000 MT
5. Nigeria: 1,400,000 MT
6. Guatemala: 910,000 MT
7. Papua New Guinea: 650,000 MT
8. Honduras: 600,000 MT
9. Cote d'Ivoire: 600,000 MT
10. Brazil: 570,000 MT
11. Ecuador: 470,000 MT
12. Cameroon: 465,000 MT
13. Congo (Kinshasa): 300,000 MT
14. Ghana: 300,000 MT
15. India: 291,000 MT
16. Peru: 278,000 MT
17. Costa Rica: 270,000 MT
18. Mexico: 230,000 MT
19. Philippines: 104,000 MT
20. Sierra Leone: 75,000 MT
21. Benin: 70,000 MT
22. Angola: 55,000 MT
23. Dominican Republic: 53,000 MT
24. Guinea: 50,000 MT
25. Liberia: 45,000 MT
26. Senegal: 14,000 MT
27. Togo: 9,000 MT
28. Venezuela: 8,000 MT
29. Total global production: 77,215,000 MT