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<\/p>\nJAKARTA \u2013 Indonesia needs to involve palm oil consuming countries, such as China, India, and Pakistan, in conducting positive campaigns on the palm oil at the global market. It is needed to prevent the European Union Deforestation-Free Regulation (EUDR) from becoming a new obligation that applies globally.<\/p>\n
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The Institute for Development of Economics and Finance (Indef) Executive Director Tauhid Ahmad said that the steps taken by Indonesia and Malaysia in rejecting the EUDR and pursuing negotiations through the Ad Hoc Joint Task Force on EUDR are the right ones. But in terms of launching the palm oil positive campaigns, Indonesia should also involve other countries, especially the consuming countries.<\/p>\n
\u201cRejecting the EUDR is the right step. But Indonesia still lacks in influencing other countries. Indonesia shouldn\u2019t just invite Malaysia in collaboration to conduct the positive campaigns. There are many consuming countries that can be involved in such endeavor. By involving them, Indonesia can prevent the EUDR from becoming a new obligation that applies globally,\u201d Tauhid told\u00a0Investor Daily<\/em>\u00a0in Jakarta recently.<\/p>\n Tauhid is worried that the implementation of EUDR will not only incur a loss of US$6-7 billion for Indonesia as mentioned by the government, but it will also push other countries outside of the EU to follow such policy that will then permeate into other aspects.<\/p>\n \u201cActually, the EUDR affects seven commodities. So, it brings negative impacts to Indonesian economy. But the EUDR tends to apply double standards. That\u2019s why Indonesia needs to launch massive positive campaigns, not only on palm oil but also other commodities, by involving the consuming countries of all the affected commodities,\u201d he said.<\/p>\n Besides palm oil, EUDR also targets wood, rubber, cocoa, cattle, soybean, and coffee.<\/p>\n The Oil Palm Plantation Fund Management Board (BPDPKS) has previously stated that Indonesia and Malaysia could no longer urge the EU to revoke the EUDR as it had been decided by the EU. \u201cWhat can be done now is to persuade the EU to consider the interests of producing countries in the implementations of the EUDR,\u201d he said.<\/p>\n Tauhid said that besides the massive positive campaigns of palm oil, there are at least three other steps that can be implemented by Indonesia in dealing with the EUDR.<\/p>\n First, pursuing negotiations with the EU. \u201cIndonesia needs to have a strong bargaining position. If necessary, it can do retaliatory actions against the EU products entering Indonesian market. It can be implemented through various policies regarding deforestation, supply chain,\u00a0or certification of sustainability,\u201d said Tauhid.<\/p>\n Like the EU, Indonesia should also have non-tariff standardization for the EU products and other products of other countries that approve the EU steps. It is necessary as the EUDR hinders the free trade. The European countries have also contributed to the climate change as only few industries in the region that go green.<\/p>\n Second, diverting palm oil exports from EU to other regions which do not apply policies like the EUDR, such as Africa, Middle East, and Central Asia. In addition to that, exports to China and India can be increased by strengthening cooperation.<\/p>\n Third, further developing downstream palm oil industries in Indonesia, so that all of its palm oil exports are processed palm oil products. \u201cSo, in the future Indonesia\u2019s palm oil exports should be the processed derivative products and no longer the unprocessed crude palm oil CPO,\u201d said Tauhid.<\/p>\n Trade Minister Zulkifli Hasan (Zulhas) said during a meeting with Britain\u2019s International Trade Minister Nigel Huddleston on the sidelines of the 55th Asean Economic Minister\u2019s Meeting and Related Meetings in Semarang, Central Java on 20 August 2023, that Britain\u2019s environmental policies should not cause negative impacts to Indonesia\u2019s exports of agricultural and forestry products.<\/p>\n \u201cCurrently, Indonesia\u2019s exports of CPO and papers to Britain are not affected. We hope Britain will accept our certifications of timber legality verification system (SVLK) and Indonesia Sustainable Palm Oil (ISPO),\u201d Zulkifli said.<\/p>\n