Indonesia-EU continues their palm oil trade negotiations amid the escalating tensions. Reportedly, the negotiations take place during the currently ongoing Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA).
Mahendra Siregar, Indonesia’s deputy foreign minister, said that it is his duty to ensure that the IEU-CEPA will not jeopardize the palm oil industry. Accordingly, palm oil is currently Indonesia’s biggest export.
“We will ensure CEPA is not going to discriminate against palm oil as EU policies have been,” said Mahendra. “We hope the EU will come to the negotiation table in good faith this time. It will make up for their discriminative anti-palm oil policy so far.”
Mahendra added that the EU and its Renewable Energy Directive (RED) have been implicitly blackmailing Indonesia, specifically its palm oil industry. For that reason, Jakarta is ready to file a lawsuit against the union to the World Trade Organization (WTO).
“Yes, we will file the lawsuit against the EU soon,” he added.
Also Read: Undo the Ban, India Buys More Pail Oil from Malaysia
President Jokowi Supports Palm Oil Producers in Indonesia-EU Trade Negotiations
Indonesian President Joko ‘Jokowi’ Widodo voiced his support for palm oil producers in the country. Accordingly, the president expressed his concerns on the Indonesia-EU palm oil trade on a meeting with EU’s business representatives in Jakarta.
“Indonesia will not keep silent about the EU’s discrimination. Negotiations over the Indonesia-EU CEPA will continue. Palm oil will certainly be part of it,” Jokowi said.
Coordinating Minister of Economic Affairs Airlangga Hartarto hoped that the palm oil trade dispute will not hurt the relationship between the two parties. According to him, Indonesia currently exports USD 650 million worth of biofuel to Europe each year, which actually is less than 2% of the country’s USD 31 billion trade with the EU.
Moreover, he also added that the country is the current biggest buyer of European aircraft manufacturer Airbus. Indirectly, Airlangga was hinting that it potentially disrupts the Airbus trade if the EU continues to discriminate palm oil products.
“We remind you that Indonesia is Airbus’ biggest buyer. We still have pending orders for 200 aircraft,” said Airlangga.
Also Read: Palm Oil Industry: An Overview
