Indonesia bans ‘palm oil-free’ products from store shelves

JAKARTA: Indonesia, the world’s top palm oil producer and consumer, is joining Malaysia in removing anti-palm oil products from grocery store shelves.

Local and imported food items that are labelled “palm oil free” or “no palm oil”, found at some high-end stores, would be removed, said Penny K. Lukito, head of the National Agency of Drug and Food Control, on Wednesday.

Indonesia and Malaysia, which together make up about 85 per cent of global palm oil supply, are upping their fight against what they say are discriminatory actions by some developed countries.

They have threatened to retaliate in a potential trade war with the European Union after the bloc decided to place stricter limits on the tropical oil’s use in biofuels on concerns over deforestation.

“The labelling is part of a black campaign to undermine the competitiveness of Indonesian palm oil,” said Penny. “Palm oil is very important for Indonesia and it is the government’s duty to protect the industry.”

The agency would initially educate and persuade the sellers, she said, adding that legal action would be taken if the stores continued to sell those products. She declined to name the retailers.

There was a perception among people living in urban areas that palm oil was not healthy, but that hadn’t been scientifically proven, she said.

The agency, as well as the Indonesian Palm Oil Board and the Trade Ministry, would hold a campaign to raise health awareness, she added.