{"id":26305,"date":"2023-05-11T16:38:14","date_gmt":"2023-05-11T09:38:14","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=23101"},"modified":"2023-05-11T16:38:14","modified_gmt":"2023-05-11T09:38:14","slug":"palm-oil-deforestation-stand-in-scholz-way-to-push-fta","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2023\/05\/11\/palm-oil-deforestation-stand-in-scholz-way-to-push-fta\/","title":{"rendered":"Palm Oil, Deforestation Stand In Scholz\u2019 Way To Push FTA"},"content":{"rendered":"

Hannover – German Chancellor Olaf Scholz said that he will press for a trade agreement between the European Union (EU) and Indonesia, as part of his country\u2019s goal of lessening its economic reliance on China, particularly for crucial raw materials.<\/p>\n

\"\"<\/a><\/p>\n

Speaking on Sunday, 16 April 2023, at the opening of the annual Hannover trade fair, of which Indonesia is this year\u2019s partner, Scholz told visiting Indonesian President Joko \u201cJokowi\u201d Widodo that he was \u201cworking to finally get this agreement across the finish line,\u201d according to The Associated Press<\/em>.<\/p>\n

The EU and Indonesia officially launched negotiations for a free trade agreement (FTA) in July 2016, but these have stumbled over disagreements about Jakarta\u2019s policy and the European bloc\u2019s policies toward palm oil, a key Indonesian export. The 11th and most recent round of negotiations concluded in November 2021.<\/p>\n

Still, the EU\u2019s desire for an Indonesian FTA is becoming more ardent amid Brussels\u2019 recent determination to boost its \u201cstrategic engagement\u201d with the Indo-Pacific region, in response to the increasing strategic tension both in Europe and Asia. In Southeast Asia, the EU has already concluded free trade pacts with Singapore and Vietnam, which entered into force in\u00a0November 2019 and August 2020, respectively. The bloc is also in stagnant negotiations with Thailand, Malaysia, and the Philippines. As the European bloc has put it, \u201cThe ultimate objective is for bilateral trade agreements with individual ASEAN countries to serve as building blocks towards a future region-to-region agreement between the EU and ASEAN.\u201d<\/p>\n

This dovetails with the strategic goals of a number of individual EU member states, whose strong economic links with China have recently become the subject of growing scrutiny, particularly since the Russian invasion of Ukraine in February 2022. none more so than Germany. As Scholz said, his country is concerned about becoming too reliant on China, including for crucial minerals and compounds needed for digital technology and renewable energy generation.<\/p>\n

\u201cAt the moment we import many of them from China. And that\u2019s despite the fact that rare earth, copper or nickel are often not extracted there but in countries such as Indonesia, Chile, or Namibia,\u201d Scholz said. \u201cWe want to change that.\u201d<\/p>\n

Interestingly, Scholz added that any new trade deal should prioritize the construction of processing facilities for such raw materials in the countries where they are found, which he said would benefit the local economy. This last reference hinted at one of the key points of tension in the relationship between Indonesia and the EU \u2013 and one of the main issues holding up the progress on an FTA.<\/p>\n

Over the past few years, Jokowi has introduced a number of measures to ensure that his country derives the maximum benefit from its rich concentrations of important minerals. At the start of 2020, his administration banned the export of unprocessed nickel \u2013 Indonesia is a major source of the crucial mineral \u2013 and introduced domestic processing requirements that have required businesses to process or purify the raw materials in Indonesia before export. Late last year, he announced that the country will similarly ban exports of bauxite starting this June, and has also flagged possible future bans on the export of unprocessed tin and copper.<\/p>\n

As James Guild wrote in these pages late last year, these moves have reflected Indonesia\u2019s tendency to resort to economic nationalism when it is viewed as being in the national interest. The nickel ban in particular was \u201can attempt to force more investment in higher value-added downstream activities like smelting, and eventually battery and EV manufacturing.\u201d<\/p>\n

As mentioned, these policies have courted tensions with the EU. In late 2019, Brussels challenged the nickel export ban policy at the World Trade Organization, which last year ruled in its favor, arguing that the policy was contrary to global trade rules. Indonesia quickly announced that it would appeal the ruling, with Jokowi channeling his inner Sukarno in defense of his policy: \u201cIf we are scared of being sued, and we step back,\u201d he said, \u201cwe will not be a developed country.\u201d<\/p>\n

The fact that Scholz so explicitly cited domestic mineral processing as an important part of any future EU-Indonesia FTA suggests one of two things: either that Brussels is willing to come to terms with Jakarta on this issue, or that Berlin is willing to put pressure on the EU to this end.<\/p>\n

Certainly, the EU does seem to face a number of trade-offs in its desire for \u201cstrategic engagement\u201d with the Indo-Pacific in general and Southeast Asia in particular. For instance, the FTA with Vietnam has involved a de facto dilution of Brussels\u2019 values-based foreign policy. Meanwhile, the EU\u2019s policies aimed at fighting deforestation have courted friction with Indonesia and Malaysia, the world\u2019s two largest producers of palm oil.<\/p>\n

Given the extent to which rival powers (i.e. China) have engaged Southeast Asia nations economically, with few compunctions about these nations\u2019 \u201cinternal affairs,\u201d suggests that the EU\u2019s growing engagement with the region will require a number of compromises. Exactly where and how the EU chooses to compromise bears close watching. (*)<\/p>\n

Source: thediplomat.com<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Hannover – German Chancellor Olaf Scholz said that he will press for a trade agreement between the European Union (EU) and Indonesia, as part of his country\u2019s goal of lessening its economic reliance on China, particularly for crucial raw materials.<\/p>\n","protected":false},"author":1,"featured_media":23103,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3708,3709],"tags":[],"class_list":["post-26305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publication","category-recent-news"],"yoast_head":"\nPalm Oil, Deforestation Stand In Scholz\u2019 Way To Push FTA - 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Indonesia said on Saturday that free trade negotiations with the European Union, which have been ongoing for nine years, are expected to be concluded by the end of June 2025. Airlangga Hartarto, the chief economic minister for Southeast Asia\u2019s biggest economy, met with EU Commissioner for Trade Maros\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/06\/RI_EU_sepakat_.jpg?fit=702%2C437&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/06\/RI_EU_sepakat_.jpg?fit=702%2C437&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/06\/RI_EU_sepakat_.jpg?fit=702%2C437&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/06\/RI_EU_sepakat_.jpg?fit=702%2C437&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":27991,"url":"https:\/\/gapki.id\/en\/news\/2024\/06\/11\/ri-russia-led-eeu-to-set-up-free-trade-favoring-palm-oil\/","url_meta":{"origin":26305,"position":1},"title":"RI, Russia-led EEU To Set Up Free Trade, Favoring Palm Oil","author":"admin","date":"June 11, 2024","format":false,"excerpt":"MOSCOW - INDONESIA expects to conclude discussions on a free trade agreement with the Russian-led Eurasian Economic Union (EEU) in July this year, its chief economic minister said on Monday (Jun 10). Economic Coordinating Minister Airlangga Hartarto met with Eurasian Economic Commission trade minister Andrey Slepnev in Moscow on Monday.\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/airlangga_sphdigital.com_.sg_.jpg?fit=800%2C508&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/airlangga_sphdigital.com_.sg_.jpg?fit=800%2C508&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/airlangga_sphdigital.com_.sg_.jpg?fit=800%2C508&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/airlangga_sphdigital.com_.sg_.jpg?fit=800%2C508&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":23252,"url":"https:\/\/gapki.id\/en\/news\/2023\/06\/08\/minister-airlangga-lobbying-uk-not-to-apply-eudr\/","url_meta":{"origin":26305,"position":2},"title":"Minister Airlangga Lobbying UK Not To Apply EUDR","author":"admin","date":"June 8, 2023","format":false,"excerpt":"JAKARTA -- Economic Coordinating Minister Airlangga Hartarto hopes that the United Kingdom (UK) will not follow the European Union (EU) in implementing the EU Deforestation-free Regulation (EUDR), which is potential to negatively affect the small-scale farmers of Indonesia\u2019s top agricultural commodities, especially palm oil. Minister Airlangga expressed the hope on\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/06\/palmoil_japantimes.com_.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/06\/palmoil_japantimes.com_.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/06\/palmoil_japantimes.com_.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/06\/palmoil_japantimes.com_.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":19062,"url":"https:\/\/gapki.id\/en\/news\/2020\/09\/08\/govt-asks-for-concerted-efforts-as-lawsuit-against-eu-proceeding\/","url_meta":{"origin":26305,"position":3},"title":"Govt Asks For Concerted Efforts, As Lawsuit Against EU Proceeding","author":"admin","date":"September 8, 2020","format":false,"excerpt":"Jakarta: The trade ministry has encouraged all stakeholders to take part in the positive campaigns on palm oil industry to counter all discriminations and negative campaigns against crude palm oil (CPO) at the international stage. Indonesia\u2019s Deputy Minister of Trade Jerry Sambuaga said that the government will take all necessary\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/09\/palmoil_negatif_campaign.jpg?fit=800%2C500&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/09\/palmoil_negatif_campaign.jpg?fit=800%2C500&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/09\/palmoil_negatif_campaign.jpg?fit=800%2C500&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/09\/palmoil_negatif_campaign.jpg?fit=800%2C500&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":26260,"url":"https:\/\/gapki.id\/en\/news\/2023\/03\/31\/gapki-seeking-to-maximize-hannover-for-palm-promotion\/","url_meta":{"origin":26305,"position":4},"title":"GAPKI Seeking To Maximize Hannover For Palm Promotion","author":"admin","date":"March 31, 2023","format":false,"excerpt":"JAKARTA - The Indonesian Palm Oil Association (GAPKI) will take part in the industrial exhibition of\u00a0Hannover Messe in Germany on 17-21 April 2023 to show to the world the sustainability practices in the palm oil industry of Indonesia. During the world\u2019s largest exhibition of industry technology, GAPKI will feature the\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/06\/yuli_palmoil_gapki.png?fit=968%2C572&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/06\/yuli_palmoil_gapki.png?fit=968%2C572&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/06\/yuli_palmoil_gapki.png?fit=968%2C572&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/06\/yuli_palmoil_gapki.png?fit=968%2C572&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":31631,"url":"https:\/\/gapki.id\/en\/news\/2026\/07\/17\/gapki-expands-ris-palm-export-to-russia-through-strategic-deal\/","url_meta":{"origin":26305,"position":5},"title":"GAPKI Expands RI\u2019s Palm Export To Russia Through Strategic Deal","author":"admin","date":"July 17, 2026","format":false,"excerpt":"MOSCOW \u2013 The Indonesian Palm Oil Association \u00a0(GAPKI) has expanded its international cooperation by signing a Memorandum of Understanding (MoU) with The Fat and Oil Union of Russia and the Association of Enterprises of the Fat and Oil Industry of the Eurasian Economic Union (EAEU). The agreement has become an\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/07\/eddy_martono_MOU_Rusia___.webp?fit=888%2C561&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/07\/eddy_martono_MOU_Rusia___.webp?fit=888%2C561&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/07\/eddy_martono_MOU_Rusia___.webp?fit=888%2C561&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/07\/eddy_martono_MOU_Rusia___.webp?fit=888%2C561&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/26305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/comments?post=26305"}],"version-history":[{"count":0,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/26305\/revisions"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=26305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=26305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=26305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}