Govt Explains to the EU’s Firms over Discrimination against Palm Oil

Indonesian government has invited the European Union-based firms to explain its position concerning discrimination against palm oil by the EU. The explanation was given by Minister for Economic Affairs Darmin Nasution accompanied by Coordinating Minister for Maritime Affairs Luhut Panjaitan and Vice Minister for Foreign Affairs A.M.

Govt Explains to the EU’s Firms over Discrimination against Palm Oil
Indonesian government has invited the European Union-based firms to explain its position concerning discrimination against palm oil by the EU. The explanation was given by Minister for Economic Affairs Darmin Nasution accompanied by Coordinating Minister for Maritime Affairs Luhut Panjaitan and Vice Minister for Foreign Affairs A.M. Fachir in Jakarta, Wednesday (20/3/2019). “This meeting is so urgent that two coordinating ministers need to explain the important issue about palm oil,” A.M. Fachir said as quoted by Bisnis.com. Earlier on 13 March 2019, the European Commission (EC) adopted the Delegated Regulation no. C (2019) 2055 Final on High and Low ILUC Risk Criteria on biofuels. The draft classifies palm oil as an unsustainable and “high-risk” ILUC commodity. Darmin asserted that the government will take any possible options to protect the commodity. “If you continue with unfair discrimination against palm oil, we will take any options to fight back.” According to Darmin, the EU has intentionally adopted a disguised protectionist measure against palm oil to protect and to promote EU`s home-grown vegetable oils such as rapeseed and sunflower.  “We are trying to stop the EU to ratify RED II. Should the EU ratify it, Indonesia will lodge a formal protest with the WTO and will take some other actions that I don’t have to explain.” He also acknowledged that investors from the EU feel unhappy if things get worse. “I hope investment will continue even if there are ups and downs in the relationship,” Darmin added. Attendees at the meeting included officials from ministries and government institutions, the Indonesia Oil Palm Plantation Fund Management Agency (BPDPKS), Indonesian Chamber of Commerce, International Chamber of Commerce (ICC) Indonesia, Indonesian Palm Oil Association, and some the EU’ businesses. ****