JAKARTA — Major palm oil producers in Asia are hoping European governments will not go ahead with proposals that could undermine their businesses and damage the Indonesian and Malaysian economies. Proponents say palm oil requires less land to grow than other vegetable oil crops. “Palm oil is the most productive oil that exists today,” said Colin Lee, director of corporate affairs at Cargill Tropical Palm, which has around 80,000 hectares of oil palm plantation in the region. Indonesia and Malaysia provide around 85% of the world’s palm oil. Palm oil makes up between 10% and 12% of their total exports, according to global bank HSBC.
JAKARTA — Ahead of the inauguration of President-elect Joko Widodo, one of the world’s largest agribusinesses has warned that Indonesia’s proposal to lower the cap on foreign ownership of oil palm plantations will deter foreign investment in the industry. John Hartmann, CEO of Cargill Tropical Palm Holdings, told the Nikkei Asian Review that a draft bill proposing the curbs came as a surprise and said his company hopes the Indonesian parliament will reconsider the move.