Jakarta, December 15, 2025 - The Indonesian Chamber of Commerce and Industry (Kadin Indonesia) and the China Chamber of Commerce of Import & Export of Foodstuffs, Native Produce & Animal By-Products (CFNA) have signed a Memorandum of Understanding (MoU) as a strategic step to strengthen trade, investment, and the development of a sustainable palm oil industry between Indonesia and China.

The MoU signing took place as part of the China Sustainable Palm Oil Alliance (CSPOA) Member Meeting and the China–Indonesia Sustainable Palm Oil Exchange Conference, which was held in a hybrid format in Beijing and Jakarta.

The agreement was signed by Chairman of Kadin Indonesia Anindya Novyan Bakrie and CFNA President Cao Derong. The meeting was also attended by the Chair of Kadin Indonesia’s Standing Committee on Palm Crops, as well as Harry Hanawi, representing the Chairman of Kadin Indonesia.

China remains one of the most strategic markets for Indonesia’s palm oil industry. China’s demand for vegetable oils has reached 38 million tons, with a significant portion supplied by palm oil.

According to data from Statistics Indonesia (BPS), total exports of Indonesian palm oil to China reached 3.59 million tons in 2023. This trend is further reinforced by the growing demand for deforestation-free palm oil products and responsible supply chains, alongside China’s strengthened sustainability policies aimed at accelerating its net-zero emissions target by 2060.

The agreement underscores the importance of collaboration in fostering inclusive and sustainable partnerships involving multiple stakeholders. Under this cooperation, WWF-Indonesia and WWF China serve as knowledge partners, providing scientific support, global policy analysis, and capacity building related to sustainable palm oil practices and Deforestation and Conversion Free (DCF) principles.

Meanwhile, the Indonesian Palm Oil Association (GAPKI) acts as the implementation partner, supporting the execution of programs and collaborative initiatives at the industry and business levels. This cooperation marks an important milestone in deepening the bilateral partnership into a more strategic and forward-looking relationship.

Kadin Indonesia Vice Chairman for Plantation Affairs Arief Rachmat stated that the MoU is an initiative of Kadin Indonesia’s Plantation Division in collaboration with CFNA, WWF China, WWF Indonesia, and GAPKI.

“This initiative is expected to further promote a sustainable palm oil industry,” Arief said.

Furthermore, Chair of Kadin Indonesia’s Standing Committee on Palm Crops, Harry Hanawi, noted that the MoU represents a continuation of efforts to build a shared vision for a transparent and sustainable palm oil value chain between the two countries.

“Alignment of standards, increased transparency, and support for smallholders will play a crucial role in advancing climate goals, sustainability, and livelihoods,” Harry said.

Through this MoU, Kadin Indonesia and CFNA will strengthen cooperation in aligning sustainability certification, enhancing traceability and transparency across sustainable palm oil supply chains, and exchanging best practices through policy dialogue and multi-stakeholder collaboration. The cooperation is also expected to strengthen smallholder capacity and improve understanding of sustainability policies and standards in both countries.

CFNA President Cao Derong emphasized that palm oil trade is not only a key pillar of economic and trade exchanges between the two countries, but also a vital industry for deepening regional cooperation and achieving mutual benefits.

“In the agricultural sector, food security, food safety, fair returns, affordable prices, and sustainable development are interlinked and form the fundamental foundation of a healthy industry,” Cao Derong said.

He further stressed that the development of a sustainable agricultural supply chain between China and Indonesia will contribute to the integration of economic, social, and environmental benefits for both countries, while supporting members of the China Sustainable Palm Oil Alliance (CSPOA) in fulfilling their sourcing commitments.

Through cooperation with CFNA and CSPOA, Kadin Indonesia hopes to enhance understanding and market acceptance in China of Indonesia’s commitment to responsible and sustainable palm oil production practices, such as the Indonesian Sustainable Palm Oil (ISPO) certification, which will be further strengthened by Deforestation and Conversion Free (DCF) principles.

This effort also aims to reinforce Indonesia’s position as a reliable, sustainable palm oil producer aligned with global regulatory frameworks.

Going forward, Kadin Indonesia and CFNA will follow up on the MoU by formulating concrete action plans, including regular meetings, delegation exchanges, and pilot projects. The cooperation is expected to serve as a solid foundation for strengthening Indonesia–China economic relations and for meaningful private sector contributions to inclusive and sustainable international trade, while reaffirming both countries’ commitment to promoting deforestation-free and sustainable palm oil supply chains.