PM, JOKOWI SEND E.U. PROTEST LETTER
It is over EU’s plan to stop use of palm oil in renewable fuel
INDONESIAN President Joko Widodo and Prime Minister Tun Dr Mahathir Mohamad have signed a joint letter of objection to the European Union (EU) over its plan to phase out the use of palm oil in renewable fuel, an Indonesian official said yesterday.
The letter was sent to the EU over the weekend, said Luhut Pandjaitan, coordinating minister for maritime affairs, who also oversees natural resources issues. He declined to disclose the content of the letter.
Indonesia and Malaysia, the world’s top producers of the vegetable oil, have both threatened a World Trade Organisation challenge against the EU over its plan
to stop the use of palm oil by 2030 in renewable transport fuel.
An Indonesian delegation arrived in Brussels for an official visit this week “as a response to the EU’s discriminatory policy”, the country’s Coordinating Economic Ministry said yesterday.
The Indonesian delegates were part of a joint mission of the Council of Palm Oil Producing Countries, which comprises Indonesia, Malaysia and Colombia.
“The purpose of the mission is to convey disappointment and to fight the delegated act that has been adopted by the European Commission.”
Last month, the European Commission determined that oil palm had resulted in deforestation and its use should be phased out.
The EU plans to increase its use of renewable energy sources and to take into account deforestation when it determines what can be labelled renewable.
Indonesia, the world’s largest palm oil producer, argues that rather than promoting sustainability in the vegetable oil sector, the regulation is more about protecting and promoting the EU’s home-grown vegetable oils.
European spirits makers said last week they were facing difficulties exporting drinks to Indonesia amid rising tension over palm oil, but an Indonesian official denied that it was a retaliation against EU.