Indonesia, Malaysia Palm Oil Makers Join Forces Against Critics

Kuala Lumpur, Malaysia | May 10, 2010 by D-8 Secretariat

The Indonesia-Malaysia Palm Oil Group brings together six organizations from the two nations, which account for 85 percent of global production.

Palm oil producers from Malaysia said on Wednesday they had formed a coalition with their counterparts in Indonesia to counter intensified campaigns that blame the industry for rapid deforestation.

The Indonesia-Malaysia Palm Oil Group brings together six organizations from the two nations, which account for 85 percent of global production.

They said they had joined forces after being attacked by nongovernment organizations that have accused them of causing deforestation and threatening the survival of endangered species.

“The group will enable us to get together to defend some allegations that were made by the NGOs,” said Mamat Salleh, chief executive of the Malaysian Palm Oil Association, a member of the group.

The NGO had influenced some large corporations to boycott the use of palm oil. Mamat said. “It’s getting serious, we are not as bad as portrayed by those people.”

Palm oil, which is used extensively across the globe for biofuels, processed food and toiletries, is a key export for the two nations, earning them more than $25 billion last year.

As well as the MPOA, the coalition includes the Indonesian Palm Oil Association, the Association of Plantation Investors of Malaysia in Indonesia and the Indonesia Oil Palm Smallholders Association.

It also includes the Sarawak Oil Palm Plantation Owners Association and Federal Land Development Authority.

The announcement comes after a big Indonesian producer was dropped by high-profile clients following allegations it was not following environmentally sound practices.

In a statement, the coalition said it agreed “to engage with the existing Roundtable on Sustainable Palm Oil for a more practical scheme”.

The RSPO was formed in 2004 to establish stringent social and environmental criteria including a ban on clearing forests in order to plant the crop.

Mamat did not elaborate on the “practical scheme” or whether the group will shun the RSPO, but said “we will decide what we want to do.”

The environmental group accused the producer of wiping out rainforests and destroying endangered orangutan habitats. The CPO producer has rejected the claims.

News source: AFP, the Jakarta Globe, D-8 Media.

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