Jakarta – The Agriculture Ministry has stated that the Indonesian government will file a lawsuit at the World Trade Organization (WTO) against the European Union’s (EU) deforestation law which bans imports of a number of commodities into the EU market.

Director General of Plantations Andi Nur Alamsyah said that the government is preparing a number of plans. “We are now developing big data on plantations and block-chain so we can tackle export barriers,” said Andi at Pullman Central Park Hotel, Jakarta on Monday, 27 February, 2023.

At the end of last year, the European Union passed a new law that restricts companies from selling commodities linked to deforestation to their markets. Indonesia is one of the countries that will be affected by the new regulation, besides Brazil and Colombia.

The Indonesian government’s plan to challenge the regulation to WTO is supported by the Indonesian Oil Palm Farmers Association (Apkasindo). Head of Apkasindo, Gulat Manurung, opined that the government must immediately file a lawsuit because the policy also has a major impact on oil palm farmers.

“It must be sued and it is mandatory. If the government doesn’t sue, we will sue,” said Gulat at Pullman Central Park Hotel, Jakarta on Monday, February 27.

According to Gulat, the lawsuit is aimed at fighting for justice and equality of rights belonging to all countries. Moreover, the European Union actually needs supplies of imported palm products from Indonesia, the largest exporter of palm products.

The deforestation law requires companies to make a due diligence statement showing that their supply chain is not contributing to forest destruction before they sell goods to the European Union – or they could face hefty fines.

Under the new regulations, companies are obliged to prove when and where the commodity is produced and is not grown from land deforested after 2020.

This policy applies to soy, beef, palm oil, wood, cocoa, coffee, and several derivative products including leather, chocolate, and furniture. Rubber, charcoal, and some palm oil derivatives are included at the request of EU parliament members. (*)

Source: TEMPO.CO