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Jakarta Post

Indonesia’s CPO firms to boycott any talks with EU on ILUC

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, February 7, 2019   /   12:04 pm
Indonesia’s CPO firms to boycott any talks with EU on ILUC President Joko “Jokowi” Widodo plants a young oil palm to kick off a tree replanting program in Musi Banyuasin regency of South Sumatra on Oct. 13, 2018. (Courtesy of/The Indonesian Palm Oil Association ( GAPKI) )

The Indonesian palm oil industry will boycott any talks on indirect land use change (ILUC) impacts of biofuels initiated by the European Commission, arguing that it was part of a European Union plan to scrap CPO from the list of vegetable oils to produce biodiesel.

Indonesian Palm Oil Council (DMSI) chairman Derom Bangun said in Jakarta on Wednesday that Indonesia and Malaysia could not accept the ILUC parameters of the renewable energy concept devised by the EU.

“We have rejected the concept, and we won’t take part in discussing it. Let them have their own concept. We have another way,” Derom said, as quoted by

He said Indonesia and Malaysia, the first and second-largest palm oil producing countries, would lodge a protest with the World Trade Organization (WTO) should the EU refer to the ILUC concept for its renewable energy directive (RED II).

Meanwhile, Indonesian Biodiesel Producers Association executive chairman Paulus Tjakrawan added that the Indonesian biodiesel industry also did not take part in any talks on ILUC. He said Indonesia often got pressure from the EU, including accusations of dumping.

The EU has linked CPO production to land use change, particularly deforestation, that could create additional greenhouse gas emissions, while Indonesia and other CPO producing countries argue that CPO production is the most efficient in terms of land use.

Indonesia issued the results of a survey last week, saying the land needed for oil palm plantations was only one ninth of the land used for other vegetable oil crops, like sun flower or soybean. (bbn)