InfoSAWIT, MEDAN – Indonesia, Malaysia, and Thailand have strengthened their commitment to sustainable palm oil development by reaching agreement on the substance of a regional Memorandum of Understanding (MoU) during the 4th Project Implementation Team (PIT) Palm Oil Cooperation (POC) Meeting held in Medan.
The meeting formed part of the 19th Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) Working Group on Agriculture and Agribusiness (WGAA) and brought together representatives from the three leading palm oil-producing nations to discuss closer collaboration across the sector.
Collectively accounting for around 87% of global palm oil production, the three countries emphasized the importance of regional cooperation in addressing common industry challenges, including productivity improvement, downstream industry development, sustainability, smallholder empowerment, and expanded international market access.
The session was chaired by Dato’ Razali bin Mohamad, Chairman of the PIT Palm Oil Cooperation. Indonesia’s delegation was led by Hendratmojo Bagus Hudoro, Acting Director of Plantation Downstream Development, while Malaysia and Thailand were represented by Norhayati binti Md. Husin and Ms. Hirunya Srasom, respectively.
In his remarks, Hendratmojo highlighted that regional collaboration has become increasingly important amid shifting global trade dynamics, growing sustainability requirements, and climate change impacts affecting the plantation sector. He stressed that cooperation under the IMT-GT framework should continue to focus on increasing plantation productivity, promoting downstream processing, strengthening smallholder capacity, encouraging technological innovation, and aligning policies that support sustainable palm oil development.
According to information published by Indonesia’s Ministry of Agriculture and cited by InfoSAWIT, one of the meeting’s key outcomes was the successful completion of the draft MoU on Palm Oil Cooperation under the IMT-GT framework, marking a significant milestone in regional collaboration.
The proposed agreement will provide a foundation for cooperation in several strategic areas, including plantation productivity, downstream industry development, traceability systems, sustainable cultivation practices, human resource development, research and innovation, and the exchange of data, information, and technical expertise among the three countries.
Delegates also proposed signing the MoU during the 32nd IMT-GT Ministerial Meeting, scheduled for September 2026, to reinforce political commitment toward long-term regional cooperation in the palm oil sector.
In addition to endorsing the MoU, participants adopted the Terms of Reference (ToR) for the PIT Palm Oil Cooperation, establishing the operational framework for future collaborative programs.
The meeting also praised the successful implementation of the Webinar on Oil Palm Smallholder Empowerment held in June 2026. Representatives from Indonesia’s Palm Oil Plantation Fund Management Agency (BPDP) expressed hope that recommendations from the webinar would be translated into concrete initiatives benefiting oil palm smallholders. Participants further proposed including a similar program in the 2027 work plan.
Malaysia also confirmed its readiness to host the next PIT Palm Oil Cooperation meeting. Delegates agreed that the 5th PIT POC Meeting will be held virtually, while the 6th meeting will take place in person alongside a future WGAA gathering.
The outcomes underscore the shared commitment of Indonesia, Malaysia, and Thailand to building a more competitive, resilient, and sustainable palm oil industry while reinforcing the region’s position as the world's leading palm oil production hub. (T2)
