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Businesses worry RI fight on deforestation may hamper EU-CEPA
Businesses urged the government to make sure negotiations on the European Union deforestation law would not result in more delays in the EU-Indonesia trade agreement.
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Shinta Kamdani, chairwoman of the Business 20 (B20) Indonesia 2022, speaks at the inception meeting of the Group of 20 subforum on Jan. 27, 2022.
(YouTube/screenshot)
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usinesses have expressed worry that Indonesia’s fight to soften the European Union’s stance on deforestation may affect negotiations on the comprehensive economic partnership agreement (CEPA) between the country and the bloc.
Shinta Kamdani, newly appointed chairwoman of the Indonesian Employers Association (Apindo), told reporters on Thursday that businesses needed the trade agreement, pointing out that it would greatly leverage the country’s competitiveness by entering the European market.
She urged the government to find ways so negotiations on the upcoming EU Deforestation Regulation (EUDR) did not disrupt the entry that businesses needed.
"Yes, that is what we are concerned about. We suggest the government find a way so that the negotiations [on the EU CEPA] can be separated [from the EUDR],” Shinta said.
Read also: RI, Malaysia seeks to soften EU palm oil stance
The EUDR, which will tighten rules on trading commodities associated with deforestation, has rattled Indonesia and Malaysia, the world’s two largest palm oil producers, as the regulation is perceived to likely hammer the industry.
In addition, commodities such as cocoa and rubber, among many other products, will also be subjected to the law.
