Policy paper

Memorandum of Understanding between the Government of the Republic of Indonesia, the Government of the Netherlands, and the Government of the United Kingdom of Great Britain and Northern Ireland on Cooperation on Sustainable Production of Palm Oil

Published 25 March 2026

The government of the Republic of Indonesia as represented by the Ministry of Foreign Affairs of the Republic of Indonesia, the government of the Netherlands as represented by the Ministry of Foreign Affairs of the Netherlands, and the government of the United Kingdom of Great Britain and Northern Ireland as represented by the Foreign, Commonwealth and Development Office of the United Kingdom (hereinafter referred to individually as a “Participant” and collectively as the “Participants”),

Desiring to strengthen the friendly relationship between the three countries and their peoples, to foster economic and sustainable development between the three countries, and to promote sustainable cooperation towards sustainable palm oil between the three participants on the basis of mutual benefit;

Referring to the Joint Declaration by the Government of the Republic of Indonesia and the Government of the Netherlands on a Comprehensive partnership established on 20 November 2013 and the Plan of Actions of the Joint Declaration on a Comprehensive Partnership between the Republic of Indonesia and the Government of the Netherlands launched on 31 October 2023;

Referring to the Joint Statement on a New Strategic Partnership between the Republic of Indonesia and the United Kingdom launched on 21 November 2024, agreeing to promote progress in the Forest, Agriculture Commodity and Trade (FACT) Dialogue, and promote cooperation to meet the 2030 Sustainable Development Goals, aligning with the Paris Agreement and working towards better support and incentivization of sustainable production and trade;

Taking into account the conclusions from the 22nd Mixed Commission on Bilateral Economic Cooperation between the Governments of Indonesia and the Netherlands held on 21 November 2018 in The Hague, proposing to start a dialogue on joint ambitions on the production of sustainable palm oil to achieve a government-to-government arrangement including support from the Government of the Netherlands for its implementation and including the suggestion to explore cooperation in promoting awareness of smallholder farmers on the importance of certification of sustainability;

Taking into account the existing Memorandum of Understanding on Cooperation on Sustainable Production of Palm Oil between the Government of the Republic of Indonesia and the Government of the Netherlands signed on 26 September 2019 in New York;

Taking into account the Supporting Palm Oil Sustainability (SPOS) in Indonesia programme established between the Government of Indonesia and the Government of the United Kingdom between July 2019 and December 2022 and the National Initiatives for Sustainable and Climate Smart Oil Palm Smallholders (NI-SCOPS) Phase 1 established between the Government of Indonesia and the Government of the Kingdom of the Netherlands between 2019 and 2023;

Taking into account the recommendations of the Final Report of SPOS Indonesia, including that further efforts were required to ensure that relevant palm oil sustainability policies were successfully implemented in the field;

Taking note that global demand for vegetable oils is likely to continue to grow and that oil palm is one of the most productive and efficient vegetable oil crops per hectare in the world;

Taking note of the importance of palm oil as a key ingredient for food, feed, biofuel and oleochemical products, and the importance of the palm oil sector and related trade to social welfare of millions of smallholders and workers, their families, related industries and trade contributing to economic development;

Having recognised the importance of the Sustainable Development Goals that came into effect in January 2016 and call for sustainable production and consumption (SDG12), promote sustained, inclusive and sustainable economic growth (SDG8), and ensuring food security and nutrition (SDG2), ending poverty (SDG1), combating climate change (SDG13), and halting biodiversity loss, land degradation and deforestation (SDG15);

Having recognised the Paris Agreement adopted on 12 December 2015 at the twenty-first session of the Conference of the Parties to the United Nations Framework Convention on Climate Change held in Paris from 30 November to 13 December 2015; HAVING RECOGNISED sustainable palm oil production in Indonesia and the inclusive participation of smallholders in its production process, as one of the important drivers for economic growth and sustainable development for Indonesia;

Having recognised Indonesia’s initiatives on enhancing the capacity of smallholder farmers; managing and monitoring the environment; enhancing agrarian reform; and strengthening the implementation of Indonesian Sustainable Palm Oil certification through a national action plan on sustainable palm oil and respective regulations;

Having recognised the commitment to accelerate the global efforts to achieve the 2030 Agenda for Sustainable Development Goals commitments expressed in the New York Declaration on Forests, the Glasgow Leaders’ Declaration on Forests and Land Use and the Paris Climate Agreement, underlining the global importance to preserve primary forests and high conservation value areas amongst others through responsible supply chain management;

Having recognised the commitment by the Government of Indonesia to improve sustainable agricultural practices in palm oil sectors as one of the efforts to fight deforestation and climate change through the moratorium on new licenses for oil palm plantations;

Having recognised the opportunity and responsibility of the Participants as major exporters and importers of palm oil to move the global economy to a more resilient, inclusive and sustainable path;

Being convinced of the necessity of joining forces for a lasting and effective cooperation in the interest of the Participants,

Superseding the Memorandum of Understanding between the Government of Indonesia and the Government of the Kingdom of the Netherlands on Cooperation on Sustainable Production of Palm Oil, signed at New York on 26 September 2019;

Pursuant to the applicable laws and regulations of their respective countries;

Have reached the following understanding:

Paragraph 1: Objective

The Participants will, subject to the terms of this Memorandum of Understanding (hereinafter referred to as “MoU”) endeavor to cooperate in supporting, understanding and communicating the improvement and further development of, sustainable palm oil production, and sustainability certification specifically by (independent) smallholders, with a view to contribute to Dutch, Indonesian and British climate policy objectives related to the agriculture sector.

Paragraph 2: Areas of cooperation

The Participants will endeavor to take necessary steps to encourage and promote implementation in the following areas, namely:

• work on improving the livelihoods of smallholders
• capacity building for smallholders
• improving the adaptive capacity of local communities
• climate change mitigation and adaptation related to the agriculture sector; and
• implementing practices that ensure agricultural commodities are produced in sustainable principles

Paragraph 3: Form of cooperation

The cooperation in the framework of this MoU may be conducted in the following forms, namely:

• technical assistance and projects implementation
• pilot projects
• sharing of information and knowledge
• exchange of visits and technical dialogues among experts and delegations
• joint research; and
• yearly consultations in the framework of the MoU, for example as part of the Mixed Economic Commission

Paragraph 4: Implementation

1. To facilitate the implementation of this MoU appropriate implementing arrangements (e.g. underlying project plans and/or documents) may be concluded by the Participants and/or related institutions. Such arrangements will further specify and set out, inter alia, programs or projects, duration, funding, terms and conditions, monitoring and evaluation, financial conditions of the cooperative activities and other related matters.

2. Each year, the Participants will host in turn at least one meeting to deliberate on the progress of the cooperation following from this MoU.

Paragraph 5: Financial arrangements

1. The financial arrangements to cover expenses for the co-operative programmes and/or activities carried out within the framework of this MoU will be jointly decided by the Participants on a case-by-case basis subject to the availability of funds.

2. Notwithstanding anything in subparagraph 1 of this paragraph, expenses for organising the meetings will be borne by the Participant hosting the meetings. The Participant which is sending its representatives for participation in the meetings, if any, will bear their own costs of travelling and accommodation.

Paragraph 6: Participation of third party

Either Participant may invite the participation of a third party in joint activities being carried out under this MoU upon the prior written consent of the other Participant. In carrying out such joint activities, the Participants will ensure that the third party or parties will comply with the provisions of this MoU.

Paragraph 7: Designated authority

The designated authority responsible for the implementation of this MoU on behalf of the Government of Indonesia will be the Ministry of Foreign Affairs, on behalf of the Government of the Netherlands will be the Ministry of Foreign Affairs, and on behalf of the Government of the United Kingdom will be the Foreign, Commonwealth and Development Office. Related Ministries and Institutions are stipulated in the appendix of the Technical Arrangement.

Paragraph 8: Confidentiality

1. Each Participant will observe the confidentiality and secrecy of documents, information and other data received or supplied to the other Participants during the period of the implementation of this MoU or any other arrangements made pursuant to this MoU.

2. None of the Participants will disseminate such information to a third party or use this information for administrative, editorial, prosecutorial or judicial purposes without the prior written consent of the other respective Participants concerned.

3. All Participants decide that the provisions of this Paragraph will continue to have effect on between the Participants notwithstanding the expiry or termination of this MoU (Paragraph 14).

4. The terms of this paragraph are not applicable insofar as they conflict with any obligation of the Participants to provide or disclose information required by applicable law.

Paragraph 9: Suspension

Each Participant may, for reasons of national security, national interest, public order or public health suspend temporarily, either in whole or in part, the implementation of this MoU, which suspension will come into effect immediately after notification has been given to the other Participants through diplomatic channels.

Paragraph 10: Revision, modification and amendment

1. Each Participant may request in writing a revision, modification or amendment of all or any part of this MoU.

2. Any revision, modification or amendment consented to by the Participants - will be communicated in writing through diplomatic channel and will form part of this MoU.

3. Such revision, modification or amendment will come into effect on such date as may be jointly determined by the Participants

4. Any revision, modification or amendment will not prejudice the terms and duties arising from or based on this MoU prior to or up to the date of such revision, modification or amendment.

Paragraph 11: Notice

Any notice, approval, consent, request or other communication under this MoU will be in writing in the English language and delivered by registered mail to the address or sent to the electronic mail address of the Ministry of Foreign Affairs of the Republic of Indonesia, the Ministry of Foreign Affairs of the Netherlands or the Foreign, Commonwealth and Development Office of the United Kingdom, shown below or to such other address or electronic mail address as either Participant may have notified the sender. Unless otherwise provided herein, such address or electronic mail address is duly acknowledged by the recipient:

To the Ministry of Foreign Affairs, Republic of Indonesia
Ministry of Foreign Affairs of the Republic of Indonesia
Jl. Pejambon No.6. Jakarta Pusat
10110
Indonesia
Telephone number: (+)62 21 381 2752
Email: eropa1@kemlu.go.id

To the Ministry of Foreign Affairs, the Netherlands
Ministry of Foreign Affairs
P.O. Box 20061
2500 EB The Hague
The Netherlands
Telephone number: (+)31 70 379 89 11
Email: dde@minbuza.nl

To the Foreign, Commonwealth and Development Office, United Kingdom
Foreign, Commonwealth and Development Office
King Charles Street
London
SW1A 2AH
United Kingdom
Telephone number: (+)44 20 7008 5000
Email: fcdo.correspondence@fcdo.gov.uk

Paragraph 12: Effect of Memorandum of Understanding

This MoU serves only as a record of the Participants’ intentions and does not constitute or create, and is not intended to constitute or create, any rights or obligations under domestic or international law. It will not give rise to any legal process and will not be deemed to constitute or create any legally binding or enforceable obligations, express or implied.

Paragraph 13: Settlement of disputes

Any difference or dispute between the Participants concerning the interpretation and/or implementation and/or application of any of the provisions of this MoU will be settled amicably through mutual consultation and/or negotiations between the Participants through diplomatic channels.

Paragraph 14: Coming into effect, duration and termination

1. This MoU will come into effect on the date of the last signature by the Participants and will remain in effect for a period of five (5) years.

2. Thereafter, it may be extended for a further period of three (3) years based on mutual written consent of the Participant.

3. Notwithstanding anything in this Paragraph, any Participant may, through diplomatic channels, terminate this MoU by giving three (3) months written notice prior to its intention to do so to the other Participants. Without prejudice to the foregoing, steps will be taken to ensure that the termination of this MoU will not be prejudicial to any activities or projects carried out within the framework of the MoU.

4.The foregoing record represents the understandings reached between the Participants upon the matters referred to therein.

Signed in Jakarta on October 9th 2025 and in three (3) original texts in the English and Indonesian languages, all text being equally authentic. In case of any divergence of interpretation, the English text will prevail.

For the government of the Republic of Indonesia, Sugiono, Minister for Foreign Affairs.

For the government of Netherlands, David Van Weel, Minister of Foreign Affairs.

For the government of the United Kingdom of Great Britain and Northern Ireland, Yvette Cooper, Secretary of State for Foreign, Commonwealth and Development Affairs.