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EU defends stance on palm oil amid Indonesia's backlash
The EU, which is Indonesia’s largest palm oil customer, denied allegations that it had deliberately tried to undermine the market for the commodity, citing market demand as the reason for its problems.
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Harvest time: A worker gathers oil palm fruit bunches at a plantation in Lampung. (The Jakarta Post/R. Berto Wedhatama)
T
he European Union has defended its stance on palm oil and warned against any threat of retaliation by the Indonesian government, leading to a rise in trade tensions between the two jurisdictions.
The EU, which is Indonesia’s largest palm oil customer, denied allegations that it had deliberately tried to undermine the market for the commodity, citing market demand as the reason for its problems.
“What causes those ups and downs in the palm oil market? The main factor is the market itself,” charge d’affaires ad interim of the EU mission in Indonesia, Charles Michel-Geurts, told the press in Jakarta on Thursday.
He cited rising demand for more sustainable products as consumers became more aware of the impact of deforestation on the planet. As a result, manufacturers have begun labeling their products to cater to consumer preferences.
“The EU as an institution, as a governance, has nothing to do with NGOs, or producers, it’s their choice and strategy in capturing market share,” he stated, adding that the zone had no legislation promoting a complete ban on palm oil products as it only regulated labeling.
Greenpeace Indonesia, meanwhile, said the organization had never campaigned for a total boycott of palm oil.
“We are not anti-palm oil, we are anti-deforestation,” head of Greenpeace Indonesia Global Forest Campaign, Kiki Taufik, told The Jakarta Post over the phone. “What we are campaigning for is for the market and consumers to use sustainably sourced palm oil because our environment and climate is at a crisis.”
