PALMOILMAGAZINE, MEDAN – Indonesia, Malaysia, and Thailand have strengthened their strategic partnership to promote a more sustainable palm oil industry by reaching a key agreement on the draft Memorandum of Understanding (MoU) on Palm Oil Cooperation under the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT).
The agreement was reached during the 4th Project Implementation Team (PIT) Palm Oil Cooperation (POC) Meeting, held as part of the 19th IMT-GT Working Group on Agriculture and Agribusiness (WGAA) Meeting in Medan on Tuesday (July 21, 2026).
The meeting served as an important platform for the world’s three largest palm oil-producing countries to strengthen regional collaboration in addressing industry challenges, including improving plantation productivity, expanding downstream industries, enhancing sustainability, empowering smallholders, and increasing access to international markets.
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Collectively, Indonesia, Malaysia, and Thailand account for approximately 87% of global palm oil production. Given their dominant share of global supply, cooperation under the IMT-GT framework is considered essential for maintaining market stability while improving the region’s competitiveness in the global palm oil industry.
The meeting 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 Product Downstream Development, while Malaysia was represented by Norhayati binti Md. Husin and Thailand by Ms. Hirunya Srasom.
In his opening remarks, Hendratmojo emphasized that stronger regional cooperation has become increasingly important amid evolving global trade dynamics, rising sustainability requirements, and climate change challenges affecting the plantation sector.
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He noted that IMT-GT collaboration should continue to focus on accelerating plantation productivity, promoting downstream processing, strengthening smallholder capacity, fostering technological innovation, and aligning policies that support sustainable palm oil development.
According to Indonesia’s Ministry of Agriculture, one of the meeting’s key outcomes was the unanimous endorsement of the substance of the MoU on Palm Oil Cooperation under IMT-GT, marking a significant milestone in strengthening regional collaboration.
The proposed MoU will provide a framework for cooperation across several strategic areas, including productivity improvement, downstream industry development, traceability systems, sustainable cultivation practices, human resource development, research and innovation, as well as the exchange of data, information, and best practices among the three countries.
Delegates also proposed signing the MoU during the 32nd IMT-GT Ministerial Meeting, scheduled for September 2026. The ministerial-level signing is expected to reinforce political commitment to expanding strategic cooperation in the regional palm oil sector.
In addition to endorsing the MoU draft, participants adopted the Terms of Reference (ToR) for the PIT Palm Oil Cooperation as the operational guideline for future collaborative programs. The document outlines coordination mechanisms, implementation procedures, and the respective responsibilities of each participating country.
The meeting also commended the successful Webinar on Oil Palm Smallholder Empowerment, held in June 2026, recognizing it as an effective platform for sharing experiences and best practices to improve the capacity and livelihoods of independent oil palm smallholders.
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Representing the Plantation Fund Management Agency (BPDP), Normansyah Syahrudin expressed hope that the webinar’s recommendations would be translated into concrete programs to further strengthen smallholder empowerment. In recognition of its success, delegates recommended including a similar webinar in the 2027 work program.
Looking ahead, Malaysia offered to host the next PIT Palm Oil Cooperation meeting. Participants agreed that the 5th PIT POC Meeting will be conducted virtually, while the 6th PIT POC Meeting will be held in person alongside the next WGAA Meeting.
The outcomes of the meeting reaffirm the commitment of Indonesia, Malaysia, and Thailand to building a more resilient, sustainable, and competitive palm oil industry. Through closer regional cooperation, the three countries aim to deliver greater benefits for smallholders, industry stakeholders, and strengthen Southeast Asia’s position as the world’s leading palm oil-producing region. (P2)
