Prabowo Strengthens Palm Oil Collaboration with Anwar Ibrahim in Malaysia

JAKARTA – Trade Minister Budi Santoso accompanied Indonesian President Prabowo Subianto in his meeting with Malaysian Prime Minister Anwar Ibrahim in Kuala Lumpur on Monday, Jan 27, 2025. The bilateral talks culminated in an agreement to strengthen strategic collaborations, including in palm oil trade and investment.

Minister Budi revealed that one of the key areas of strategic cooperation discussed was the management of the palm oil industry, a major commodity for both nations. During the meeting, President Prabowo emphasized the global demand for palm oil. “President Prabowo expressed hope that cooperation between Indonesia and Malaysia in this sector can be enhanced,” Budi stated in a written release on Tuesday, Jan 28, 2025.

Indonesia and Malaysia collectively account for 80% of global palm oil production, making their collaboration pivotal for the industry. Minister Budi acknowledged Malaysia's support in bolstering ties in this sector and affirmed Indonesia’s commitment to furthering the partnership. “Indonesia hopes that this collaboration will continue to address export barriers for palm oil in various countries,” Budi added.

Malaysia ranks as Indonesia’s sixth-largest export destination and fifth-largest source of imports. From January to November 2024, trade between the two nations totaled $21.06 billion. During this period, Indonesia exported $10.97 billion worth of goods to Malaysia while importing $10.09 billion, resulting in a trade surplus of $882 million.

For the full year of 2023, trade between Indonesia and Malaysia reached $23.2 billion, with Indonesian exports at $12.5 billion and imports at $10.8 billion.

In 2023, Indonesia’s top non-oil and gas exports to Malaysia included mineral fuels, vegetable and animal oils and fats, vehicles, iron and steel, and copper. On the import side, Indonesia’s key non-oil and gas commodities from Malaysia were nuclear reactors, boilers, mechanical equipment, plastics, electronic machinery, organic chemicals, and iron and steel.

The strengthened palm oil collaboration reflects both nations' commitment to leveraging their shared dominance in the global market and addressing challenges together, paving the way for deeper economic ties.