Jakarta – Maritime and Investment Coordinating Minister (Menko Marves) Luhut Binsar Panjaitan has stated that the government has planned to divert the export of crude palm oil (CPO) from Europe to South Africa and other African countries, if the European Union (EU) decides to reject the Indonesian palm oil.
The rejection is possible after the decision of the EU to apply the EU deforestation regulation (EUDR), which requires exporters and importers of agricultural and plantation products, including palm oil, to prove that the products are not the cause of deforestation with documents of due diligence and verifications.
Reportedly, based on the EU regulation EU will reject the palm oil from Indonesia as it is claimed to cause deforestation during process of production.
Responding to the EU policy, Minister Luhut said that Indonesia is not afraid of losing the European market. “We will divert 3 million tons of our CPO export from Europe to South Africa and other African countries,” he said.
“I said to the EU parliament that we’ll gradually reorient our palm oil export of 3 million tons from Europe to other countries. We’ll gradually divert it to African countries,” Luhut said during the Economic Update of CNBC Indonesia on Monday, 10 July 2023.
He said that the government is seeking to enter the markets in South Africa and other African countries. “We’ll make a visit to a number of countries in Africa, such as South Africa, Congo and Kenya, to establish trade relations. President has instructed to develop the global south, so south – south collaborations,” he said.
According to him, Indonesia has to fight on its own if it wants to become a developed country. “There is no developed country in this world that is willing to see developing countries like Indonesia become developed countries,” he said.
“There is a country in Europe that’s small in population, trying to dictate us. We must have pride as Indonesians. I read an article comparing us to Timor Leste, Singapore. It’s not the right comparison, as we’re different,” he said. (*)
Source: Pasardana.id/cnbcindonesia.com
