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EU embargo on Indonesian palm oil a blessing in disguise, Prabowo says
The president-elect reportedly conveyed that message during his meeting with Emmanuel Macron in July, catching the French president by surprise.
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Defense Minister and president-elect Prabowo Subianto gestures as he attends the annual State of the Nation Address at the Senayan legislative complex in Jakarta on Aug. 16, 2024. (Reuters/Ajeng Dinar Ulfiana/Pool)
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rabowo Subianto says a European Union embargo on Indonesian palm oil products is “a blessing in disguise”, as it could strengthen the country’s energy self-sufficiency.
The president-elect said he had conveyed that message during his meeting with French President Emmanuel Macron last month.
“During my private meeting with President Macron, he brought up the issue of palm oil. I responded by saying there was no need [for concern]. In fact, we would actually be grateful if European countries chose not to buy our palm oil.”
“My statement seemed to catch him by some surprise,” Prabowo said on Saturday during a speech at the national congress of the National Mandate Party, one of the parties that backed his presidential campaign.
The EU’s Deforestation-free Regulation (EUDR), which entered into force in June of last year and is scheduled to take effect on Dec. 30 this year, imposes severe restrictions on palm oil exports to the block. It is expected to significantly impact Indonesia as the world’s largest producer of crude palm oil (CPO).
Prabowo explained that instead of being sold to European countries, palm oil products could be redirected to the domestic market as raw material for biodiesel.
The government has gradually increased the mandatory percentage of palm oil-based biodiesel in its supply, with the share rising to 35 percent in February last year from the 30-percent mandate in place since 2020. The new mandate, widely known as B35, was implemented nationwide in this month.
