Jakarta – The Indonesian government is optimistic that it will win the legal case against the European Union’s (EU) palm oil discriminatory policy in the World Trade Organization (WTO). Indonesia had filed a lawsuit against the EU with the WTO.
The trade ministry’s International Trade Negotiations Director General Iman Pambagyo said last week that Indonesia would not file the lawsuit if it is not confident to win the legal case. “We’re confident to win. If not, we won’t take it to the WTO,” said Iman.
He said that the WTO has been processing the legal case. Currently, it is in the process of establishing panelists that will be assigned to adjudicate the legal case. “We hope by the end of this year, the composition of panelists will be approved, so that they can start the legal proceedings next year. We want it to proceed quickly,” he said.
He refused, however, to reveal the arguments that will be submitted by Indonesia to support its lawsuit against the EU’s renewable energy directive II (RED II) that will gradually phase out the use of palm oil as raw material to produce biofuel in Europe from 2023 until 2030.
Previously, Foreign Minister Retno Marsudi stated that Indonesia will keep fighting the discriminatory policy and negative campaigns launched against the palm oil industry. “We know that our palm oil production has been discriminated. Even negative campaigns are mounting in many countries, especially those in Europe. We’ll keep fighting the discrimination,” Retno said.
She noted that Indonesia will pursue such efforts through collaborations with partner countries. “But in doing so, we’ll stick to our principles and national interests,” she said.
She pointed out that as one of Indonesia’s top commodities, the palm oil has a big multiplier effect on the national economy. As the world’s largest producer of palm oil, Indonesia produces around 45 million tons of crude palm oil (CPO) per year from its total 16.38 million hectares of oil palm plantations, which are 41 percent owned by smallholders who are very dependent on the world’s most versatile vegetable oil. (*)
Source: KONTAN.CO.ID | Image via tempo.co
