JAKARTA – The Indonesian Palm Oil Association (GAPKI) has stated that they are not worried over the new deforestation-free law adopted by the European Union (EU) recently. The new EU regulation will ban the imports of products, including the palm oil, which are considered causing deforestation.
“The global market of palm oil will be continually growing as it is the basic need for foods and energy and raw material to feed many other industries. So, is Indonesia is worried about losing the European market? Our answer is no, as there are other markets that are continually growing higher and ready to be tapped,” Joko Supriyono, Chairman of the Indonesian Palm Oil Association (GAPKI) stated as quoted by Antara as saying on Wednesday, 25 January 2023.
Joko said that actually EU does not want to ban palm oil from Indonesia. “We can see from the fact that when Indonesia banned exports of palm oil products in 2022, Europe was confused in seeking replacement as industrial demand for palm oil in Eropa is quite high. In fact, the Indonesia’s export ban had made them panic and at that time they kept nagging President to stop the export ban,” said Joko.
Indonesia, he said, should focus on fighting for the palm oil to enter the global trade, wherever the market is. It is because the imports from other countries have continually increased.
GAPKI reported that 10 destination countries of its palm oil exports are China, India, the USA, Pakistan, Malaysia, Netherlands, Bangladesh, Egypt, Russia and Italy. The rating of the USA as palm oil importer from Indonesia had risen from the fifth in 2021 to the third in 2022. “The imports of the USA had increased from around 400,000 tons to more than 2.0 million tons,” he said.
He cited the examples of many states in the USA that had seen rising demand for palm oil to meet their needs for foods and energy. “What’s more important is the strategy of diplomacy. For example, regarding the EU’s deforestation-free law, Indonesia should fight through teams of support and campaigns and intensive efforts of lobbying,” he said.
Joko was referring to the new law on deforestation-free products which was adopted by the EU on 06 December 2022. Based on the new law, agricultural and plantation products such as palm oil, coffee, cocoa, rubber, soybean, beef and other products that are considered contributing to deforestation should be first subjected to due diligence before being allowed to enter the EU market.
The new regulation requires all operators and traders in EU to conduct due diligence to ensure that all of the products sold in Europe are not related to deforestation or forest degradation.
A group of people said that the EU new law should become a momentum for Indonesia to make improvements to its commodities that are seen to pose risks to the forests.
President Joko Widodo (Jokowi) issued in April 2022 a regulation to ban exports of crude palm oil (CPO) and other derivative products of palm oil. It was then followed with a number of implementing regulations, which include the trade minister’s regulation No. 22/2022 on temporary export ban of CPO; Refined, Bleached and Deodorized Palm Oil; Refined, Bleached and Deodorized Palm Olein, and Used Cooking Oil.
Jokowi asked the palm oil industry to prioritize on fulfilling the local need of cooking oil. He was confident that with the available production capacity the local need of cooking oil can be easily fulfilled.
“The volume of palm oil needed for cooking oil production and for exports is much higher than the volume we need for the local market. There is still a very large remaining capacity. If we’re all willing and have the intention to meet the need of the public as a priority, the local need can be easily fulfilled,” President Jokowi said on Wednesday, 27 April 2022.
President asked the palm oil industry players to see the cooking oil problem clearly and thoroughly and then prioritize the local need. But then the steps taken by the President were protested by the palm oil importing countries. (*)
Source: KOMPAS.TV/ANTARA
