Indonesia and Malaysia object to European Union over palm oil curbs

Indonesian President Joko Widodo and Malaysian Prime Minister Mahatir Mohamad have signed a joint letter of objection to the European Union 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, co-ordinating 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 Co-ordinating Economic Ministry said in a separate statement yesterday. The Indonesian delegates were part of a joint mission of the Council of Palm Oil Producing Countries, which consists of Indonesia, Malaysia and Colombia.

“The main purpose of the joint mission is to convey disappointment and to fight the delegated act that has been adopted by the European Commission,” the statement said. Last month, the European Commission determined that palm has resulted in excessive 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.