THE 10th MINISTERIAL MEETING OF CPOPC

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  1. The Ministers responsible for the palm oil industry, Coordinating Minister for Economic Affairs, the Republic of Indonesia, H.E. Mr. Airlangga Hartarto as the Chairman of CPOPC and Minister of Plantation Industries and Commodities of Malaysia, H. E. Datuk Zuraida Kamaruddin co-chaired the 10th Ministerial Meeting of Council of Palm Oil Producing Countries (CPOPC) on Tuesday, 19 July 2022 in Bali, Indonesia.
  2. The Ministerial Meeting was conducted in a hybrid format and the representatives of Observer Countries, H.E. Mr. Juan Gonzalo Botero Botero, Vice Minister of Agriculture Affairs of Colombia; H.E. Madam Dra. Laura Suazo, Minister of Agriculture and Livestock of Honduras; Hon. Mr. Kepson Pupita, Secretary General of the Oil Palm Corporation (OPIC) representing the government of Papua New Guinea delivered their respective remarks.
  3. H.E. Mr. Airlangga Hartarto highlighted the strategic roles that palm oil could play as part of the solution to the current global food and energy crises. In this regard, it is crucial for palm oil-producing countries to leverage the momentum of the world’s growing demand for palm oil and the competitiveness of sustainably produced palm oil in the global vegetable oil market. To this end, Minister Hartarto highlighted the importance of promoting worldwide acknowledgment of the sustainability of palm oil, including among others, through continued engagement with consumers and other relevant stakeholders, capacity building and investment for small-scale farmers to ensure sustainable production of palm oil.
  4. H.E. Zuraida Kamaruddin expressed her confidence the demand of palm oil to stay strong in 2022 with the opening of economic sectors and international borders, especially in food sector. Having the market on their side, palm oil producing countries have the control to push for a better narrative on palm oil at global level. The minister emphasized that this is the perfect time for palm oil producing countries with their cooperation of allies in palm oil importing nations to showcase the benefits of palm oil. Coordinated efforts in conveying strong message, particularly to the European Union and the United States are necessary to recognise member countries’ sustainability agenda and most importantly to stop all the baseless allegation on the palm oil products and industry. CPOPC will be positioned to play the leading role in addressing this, and will undertake proactive measures in promoting sustainability agenda and highlight all the efforts by Malaysia and Indonesia in this regard.
  5. In their opening remarks, the representatives of Colombia, Honduras, and Papua New Guinea emphasized the contribution of the palm oil sector on increasing the well-being of smallholders and the importance of collaboration on realising the sustainable palm oil cultivation. Vice Minister for Agricultural Affairs Colombia, H.E. Juan Gonzalo Botero Botero described the socio-economic developmental role of the palm oil in transforming the economy and provide better livelihood for the small-scale farmers. On the other hand, Minister of Agriculture and feedstock of Honduras, Mdm. Laura Suazo also underlined that the importance to pay special attention on the volatility of palm oil price and the increase in the cost of agricultural inputs, that may hurt the economic and social stability among palm oil producing countries. Mr. Kepson Pupita, the General Secretary of Oil Palm Industry Corporation (OPIC) representing the Minister of Agriculture and Livestock of Papua New Guinea pointed out the strategic position of CPOPC in channelling and addressing common concerns and issues related to sustainability, trade impediments and other challenges affecting the oil palm sector globally for mutual benefits.
  6. The meeting was mindful of tighter global supplies of vegetable oils due to the on-going geopolitical tensions, especially in Ukraine war, which worsened food crisis and high food inflation worldwide. The meeting also took notice of the possibility of biodiesel blending, while underscoring the need to watch key market drivers for the remainder of 2022.  
  7. The meeting appreciated CPOPC participation at the side event of the United Nations ECOSOC High Level Political Forum, including in the introduction of CPOPC’s Global Framework Principles for Sustainable Palm Oil (GFP-SPO) during the webinar on 11 July 2022. In addition, CPOPC also participated in the accompanying virtual exhibition on best practices to promote sustainable vegetable oils, July 10-15 2022. The side event was conducted in cooperation with the Governments of Indonesia, Malaysia, the Philippines, and the International Coconut Community (ICC), and aimed at promoting public awareness on sustainability across all types of vegetable oils.  In this regard, GFP-SPO can be used as reference in the development of vegetable oils standard. 
  8. The meeting highlighted the plan of CPOPC to jointly convene the G20 Sustainable Vegetable Oil Summit in November 2022. This event aimed among others at formulating strategy to address global vegetable oils supply chain challenges. The summit is expected to provide the forum for deliberation on relevant key issues in the global vegetable oil production and trade such as market access, sustainability, labour issues, and smallholders.
  9. The meeting took note of CPOPC plan to assist Honduras in recovering damaged oil palm plantations due to the 2020 hurricane. In this regard, CPOPC member countries (Indonesia and Malaysia) working together with other stakeholders such as Indonesia Palm Research Institute (IOPRI), PT Sinar Mas, PT Sampoerna Agro, PTP Nusantara IV, PT Sarana Inti Pratama, and PT ASD-Bakrie will donate more than 80,000 germinated oil palm seeds for Honduras.  The shipment of the donations will be conducted in due course.
  10. The Ministers welcomed the newly appointed CPOPC Secretariat officials for the period of 1 June 2022 to 31 May 2025, namely Dr Rizal Affandi Lukman as Executive Director, Datuk Nageeb Wahab as Deputy Executive Director, Dr Puah Chiew Wei as Director of Strategy and Policy, and Dr. Witjaksana Darmosarkoro as Director of Sustainability and Smallholders. The Ministers also expressed their appreciation for the excellent services of Tan Sri Datuk Dr. Yusof Basiron, the former Executive Director and Mr. Dupito D. Simamora, the former Deputy Executive Director from 1 June 2019 – 31 May 2022.
  11. The Executive Director of CPOPC further briefed the meeting on the CPOPC activities since the last ministerial meeting in December 2021, including the on-going ratification process of Protocol to amend the CPOPC Charter by CPOPC member countries. The amendment is expected to further strengthen the organization’s administrative aspects and the cooperation among CPOPC member countries and relevant stakeholders.
  12. Indonesia and Malaysia reiterated their commitment to ensure CPOPC continues its advocacy for sustainable palm oil and make use of Indonesia’s G20 Presidency to further promote CPOPC’s mission in promoting, developing, and strengthening cooperation among palm oil producing countries and relevant stakeholders; and ensure the long-term benefits of palm oil for the well-being of the world community.
  13. Ministers supported the effort to strengthen the CPOPC roles to be more dynamic and enhance cooperation among members for more impactful policy implementation.
  14. Ministers welcomed the publication of the CPOPC Palm Oil Market Outlook Update and agreed to produce monthly reviews with regard to palm oil development.
  15. Ministers expected observer countries namely Colombia, Ghana, Honduras, and Papua New Guinea to expedite the ratification process to become full members by the next Ministerial Meeting.
  16. Indonesia and Malaysia have agreed to consider increasing the biofuel mandate respectively to B35 for Indonesia and B20 for Malaysia to increase the domestic consumption
  17. Ministers looked forward to Malaysia hosting the 11th MM by March 2023.