JAKARTA: Prime Minister Datuk Seri Najib Razak has described the agreement to set up the Council of Palm Oil Producing Countries (CPOP) as a major boost for the Malaysia-Indonesia relationship.
"Malaysia and Indonesia has long enjoyed a close relationship, and now, with the formation of an international palm oil council, I'm confident that it is the biggest success for this two-way relationship.
"The establishment of this council is also historically significant and meaningful for palm oil producer countries, which will bring greater benefits to the industry as a whole," Najib wrote on his official Facebook account.
Najib and Indonesian president Joko Widodo had formally agreed to form the council during a meeting at the Indonesian presidential palace in Bogor on Sunday.
The council will allow Malaysia and Indonesia to cooperate closely as industry leaders, with both countries responsible for 85 per cent of the world's palm oil production.
Among others, the new body will also help to set global standards, determine the volume of palm oil stockpiles and see the two countries work together against threats to the industry posed by the international anti-palm oil lobby.