Indonesia and Malaysia, the world’s largest producers of palm oil, agreed, following a meeting between the political leaders of the two countries, to cooperate to combat „discrimination” against this product, Reuters reports, Agerpres reads.

Indonesian President Joko Widodo’s statements came after a meeting with Malaysian Prime Minister Anwar Ibrahim, who is on his first visit abroad since his election in November. Widodo stated that the two countries will „fight against discrimination against palm oil” and, to this end, will „strengthen cooperation through the Council of Palm Oil Producing States”.

The European Union plans to phase out palm oil-based fuels by 2030 due to the climate impact it would have on forests.

On the occasion of the bilateral meeting, Anwar and Jokowi signed eight memorandums of understanding in the fields of maritime transport, financing of export-import operations, green energy, development of the battery industry, from which the two leaders hope to intensify cross-border trade and investment. They also discussed the development of the future capital of Indonesia, Nusantara, with Prime Minister Anwar submitting 11 letters of intent from Malaysian companies regarding possible investments in the new city, which will be located in the Indonesian part of the island of Borneo.

The new capital could stimulate regional development, Anwar said, in the context in which the states of Sabah and Sarawak of the Malaysian federation are located on the Malaysian side of the island of Borneo.

„We hope that the development of the (Indonesian) capital will bring greater benefits to the entire region, including Sabah and Sarawak,” said the Malaysian prime minister.

Agerpres