The commitment was made following a meeting between President Joko “Jokowi” Widodo and visiting Malaysian Prime Minister Anwar Ibrahim at the Bogor Palace in West Java on Monday.

“We have agreed to strengthen [our] cooperation through the Council of Palm Oil Producing Countries [CPOPC] to increase the market for palm oil and to fight discrimination against palm oil,” Jokowi said during a joint press briefing after the bilateral talks.

Anwar, meanwhile, did not mention palm oil in the press briefing. But during a public lecture hosted by Indonesian media mogul Chairul Tanjung’s CT Corp, which was attended by many of Jokowi’s political adversaries but not the President himself, that Indonesia and Malaysia were looking to form an organization similar to the Organization of the Petroleum Exporting Countries (OPEC) for palm oil.

"I have just spoken with Pak President and we agree that there should be an OPEC-like organization to defend our interests in palm oil," Anwar said during the lecture. “We have tried a united front since 2015, but it has not borne fruit yet.”

The European Union is looking to phase out palm oil by 2030, Reuters has reported. It passed a law last month that prevents companies from selling palm oil along with other products that are linked to deforestation.

Jokowi expressed his disapproval of the policy during the EU-ASEAN Summit in Brussels last month, saying that the law’s inflexible approach would hurt Indonesia's development.

Read also: Jokowi sticks up for palm oil, nickel policy at EU-ASEAN summit

International relations expert Riza Noer Arfani from Gadjah Mada University (UGM) said that the joint support for palm oil from the two leaders could pave the way for further development in this sector. “[Their joint] support is a step forward in [Indonesia-Malaysia] relations. As a result, we can expect for the next steps to come not only between the governments, but also industry-to-industry, and from business-to-business.”

A combined effort from Indonesia and Malaysia, Riza added, might also help in lowering the EU’s resolve about blocking palm oil and help in creating opportunities for healthier dialogue, rather than just trade disputes.

New capital city

At the Bogor Palace, Jokowi and Anwar also discussed the development of Indonesia's new capital city project of Nusantara (IKN) in East Kalimantan, with the latter handing over 11 letters of interest from 10 Malaysian companies regarding possible investment in the new capital.

Anwar said it was part of their efforts so that “the development of the capital Nusantara will bring greater benefits to the wider region, including Sabah and Sarawak”, which are located in the Malaysian part of Borneo Island, in which Kalimantan is also located.

Read also: Malaysian PM Anwar arrives in Indonesia for first official visit

The two leaders met for two hours, with intensive discussions on downstreaming and digitalization also taking place, Anwar said.

Ahead of the talks, the President greeted Anwar before driving him around the palace's gardens in an electric buggy, AFP reported. Anwar’s trip to Indonesia is his first overseas outing since his inauguration as prime minister in November.

“Malaysia is not only our neighbor, but also one with which we have a distinctively solid relationship,” Jokowi said. “I am sure that under Anwar's leadership, the cooperation between Indonesia and Malaysia will only get stronger.”

While it is per ASEAN tradition for newly appointed heads of state to make Indonesia their first visit, Anwar said that he made the right decision “by making Indonesia the first country I visited”.

During Anwar’s visit to Indonesia, the two countries also signed a number of memorandums of understanding covering shipping, export-import financing, green energy and the development of the battery industry, which are expected to deepen cross border trade and investment.

Read also: RI should make the most of Anwar’s visit, experts say

Ironing out bilateral bumps

Jokowi said that Indonesia and Malaysia had made strides in regard to border disputes and the protection of Indonesian migrant workers in Malaysia, both of these issues are seen as stumbling blocks between the two countries.

To this end, Jokowi said that he welcomed Anwar’s commitment for Malaysia to follow a previously agreed upon streamlined recruitment process for migrant workers. Jokowi also urged the development of community learning centers in Malaysia to facilitate the educational needs of migrant workers’ children.

With regard to border disputes in the South Malacca Strait and Sulawesi Sea, negotiations will be completed this year, the President added.