7/25/2005 (Business Times) - MALAYSIA and Indonesia will soon sign a pacton commodity cooperation primarily to work together, ensure pricestability and eliminate under-cutting between the two countries.

Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kuisaid the pact will be signed once all legal matters are cleared by theAttorney-General chambers of the two countries.

A memorandum of understanding (MOU) will be signed soon on bilateralcommodity cooperation covering all commodities, especially palm oil,rubber, cocoa, timber and others, Chin told reporters in Selangoryesterday.

He was met after launching the Malaysian International Cocoa Conference2005. Malaysia and Indonesia are the world's top two oil palm growers.

Indonesia is the world's second-largest grower of rubber, followed byMalaysia. Malaysia also buys 80 per cent of its cocoa beans from therepublic.

"We hope the alliance will ensure a stable price for all commoditiesbecause farmers of both countries are always on the receiving end whenprices drop," said Chin.

On another matter, Chin confirmed that Prime Minister Datuk Seri AbdullahAhmad Badawi will unveil the Biofuel Policy next month at the MalaysiaCommodities fair in Seri Kembangan.

On the high natural rubber (NR) prices, he said the Government is happy asthe gap between NR and synthetic rubber has narrowed to 20 per cent from25 per cent previously.