REPUBLIKA.CO.ID, NUSA DUA -- The Association of Palm Oil Companies (GAPKI) said it appreciates the government's initiative in forming Council of Palm Oil Producing Countries (CPOPC) together with Malaysia.

"We welcome the initiative as it would accelerate cooperation between the two palm oil producing countries both as G (Government) to G and B (business) to B," GAPKI chairman Joko Supriyono at an Indonesian Palm Oil Conference (IPOC) here on Thursday.

Joko said CPOPC would make it easier coordination and cooperation in the development of palm oil industry and to strengthen position of Indonesia and Malaysia in as the largest palm oil producers in the world.

Together the two countries could sustain control of the palm oil market, Joko said.

The government, could harmonize and promote sustainable palm oil industrial development scheme, he added.

He said he also appreciated the government policy in slapping levy on crude palm oil and derivatives as an instrument in boosting development of domestic palm oil processing industry.

"Indeed, in short term the policy would cut the income of the farmers and plantation companies, but in mid and long term the policy would bring about gain," he said.

The benefit of the policy is an increase in CPO domestic consumption and a cut in supply to international market resulting in an increase in CPO price, he said.

Increase in the production of CPO-based fuel (BBN) would reduce dependence on imports for crude oil - another benefit from the policy, he added.

Indonesia and Malaysia officially formed the CPOPC when at the ASEAN summit meeting on Nov. 21, 2015.

The body is expected to strengthen cooperation and investment in developing sustainable and environmentally friendly palm oil industrial zone , including 'green economic' zone.

It would address hurdles in palm oil trade and other activities to boost development of palm oil industry, he said.

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