KUCHING: Chief Minister Datuk Patinggi Abang Johari Tun Openg is looking forward to the spillover effects from the production of palm oil when Indonesia moves its capital to Kalimantan.
“We are more than welcome to cooperate with them,” he told reporters at the sacrificial ritual (qurban) programme in conjunction with Hari Raya Aidiladha at Satok Sports Complex, Kampung No. 6 Satok here yesterday.
Abang Johari also said he was informed by Primary Industries Minister Teresa Kok about retaliatory moves against palm oil restrictions on biofuel towards World Trade Organisation (WTO).
Indonesian President Joko Widodo had confirmed during his recent visit to Kuala Lumpur that the Indonesian capital will move to Kalimantan although the exact location has yet to be decided.
On the development of palm oil, the country is facing challenges in embarking on oil palm plantations certified with the Malaysian Sustainable Palm Oil (MSPO) status due to European Union (EU) restrictions against using palm oil in biofuels.
At present, only 30 percent out of the total 5.85 million hectares of oil palm plantation areas in the country are MSPO-certified.
As Malaysia and Indonesia are the world’s top producers of palm oil, at about 85
percent of global output, it is noted that Sarawak is the top producer of palm oil in the country.
In biofuel, the continent uses about three to four million tonnes of palm oil every year while Europe currently consumes 7.5 million tonnes of palm oil a year, or about 10 percent to 15 percent of the global palm oil demand.
