Kuala Lumpur. Malaysia and Indonesia will invest $5 million each on the initial operations of a new joint palm oil body aimed among other things at stabilizing prices and managing stock levels, the countries announced on Saturday.
The council’s secretariat will be located in Jakarta and its membership will be extended to all oil palm cultivating countries, including Brazil, Colombia, Thailand, Ghana, Liberia, Nigeria, Papua New Guinea, the Philippines and Uganda.
Formation of the new joint council took place at the Asean summit in Kuala Lumpur. It was witnessed by Malaysian Prime Minister Najib Razak and Indonesia’s President Joko Widodo.
Malaysia and Indonesia first announced the Council of Palm Oil Producer Countries in October with the aim of ensuring further industry cooperation, establishing a global framework for sustainable palm oil, stabilizing prices and managing stock levels.
The world’s top two producers, who supply 85 percent of global palm oil, are trying to tackle various industry challenges from high stockpiles to weak prices and a polluting haze caused by smoldering forest fires.