1/4/06 KUALA LUMPUR (The Star)  -   Malaysia and Indonesia, the world's largest palm oil producers, will use a planned joint board to oversee the pricing of the commodity used in soaps and cooking. 

Indonesia's Vice-President Jusuf Kalla met Malaysia's Deputy Prime Minister Datuk Seri Najib Tun Razak to discuss the board that would also oversee trading in the commodity, Kalla told reporters on Thursday. 

Prices of palm oil fell 1.3% in the past 12 months as record harvests in Malaysia and Indonesia, which control 85% of world production, have led to an oversupply. Indonesian President Susilo Bambang Yudhoyono and Prime Minister Datuk Seri Abdullah Ahmad Badawi first discussed the plan to set up a joint board in January. 

“We should be able to control the value of the commodity,'' Kalla said. “That must be implemented through the formation of a joint board.''  

 
Datuk Seri Najib Tun Razak and Jusuf Kalla

“The plan is basically a joint effort, coordinated action to cooperate in production, research and development and trading, to boost demand for palm oil,'' said Derom Bangun, chairman of the Indonesian Palm Oil Producers' Association. 

The Indonesian association planned to meet the Malaysian Palm Oil Association to discuss the matter again in May, Bangun said by phone from Jakarta. – Bloomberg