Indonesia, Malaysia agree palm oil prices should not compete

Indonesia, Malaysia agree palm oil prices should not compete

A scenic view of the sunset at a rice field and palm trees at Sam Khok in Pathum Thani province. (File photo: Bangkok Post)
A scenic view of the sunset at a rice field and palm trees at Sam Khok in Pathum Thani province. (File photo: Bangkok Post)

JAKARTA: Malaysia and Indonesia agreed that global prices of palm oil should be determined by the two biggest producers and they should not compete, Malaysia's Prime Minister Ismail Sabri Yaakob said after meeting Indonesia's President Joko Widodo on Friday.

Palm oil prices were among several issues the two leaders discussed in their meeting in Jakarta, he said, without elaborating further on the palm oil discussion.

"Price of palm oil should be determined together by Malaysia and Indonesia and there should be no competition in terms of pricing because Malaysia and Indonesia are the two countries that control the total palm oil exports," Ismail Sabri said.

The two Southeast Asian nations account for roughly 85% of the world's palm oil production.

However, top producer Indonesia is struggling to control cooking oil prices at home as producers refer to global prices in their production costs. Authorities have previously said domestic and international prices should not be linked.

Indonesia had earlier this year restricted export volumes and capped crude palm oil and olein prices sold at home but later scrapped the policies.

Jokowi, as the Indonesian president is widely known, did not comment on palm oil in his remarks.


Do you like the content of this article?
COMMENT (4)

Freight train derails after loud blast in Songkhla

A freight train derailed after a loud bang that sounded like a bomb blast occurred on a track between Hat Yai and Padang Besar stations in Sadao district of Songkhla on Saturday afternoon. No casualties were reported.

15:16

'Most' institutions will face share-sale tax

Most institutional investors in Thailand won’t be exempted from a tax levied on stock transactions that will resume next year after more than three decades, authorities say.

14:19

Wild jumbo, two men injured in pickup truck crash

KANCHANABURI: A wild elephant was injured after being hit by a pickup truck on a road in Muang district of this western border province late on Friday night. The driver and a passenger were also hurt.

14:02