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RI not keeping silent about EU’s palm oil discrimination: Jokowi

President Joko “Jokowi” Widodo has again raised the issue of the European Union’s measures against Indonesia’s palm oil

Dian Septiari and Marchio Irfan Gorbiano (The Jakarta Post)
Jakarta
Sat, November 30, 2019

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RI not keeping silent about EU’s palm oil discrimination: Jokowi

President Joko “Jokowi” Widodo has again raised the issue of the European Union’s measures against Indonesia’s palm oil.

He expressed concern on the matter during a meeting with visiting members of the EU-ASEAN Business Council (EU-ABC) on Thursday, amid increasing trade tensions between Indonesia and the EU following the bloc's recent complaint to the World Trade Organization over Indonesia's nickel export ban and alleged illegal subsidies.

“Indonesia will not keep silent about the EU’s discrimination. Negotiations over the Indonesia-EU CEPA [Comprehensive Economic Partnership Agreement] will continue. Palm oil will certainly be part of it,” Jokowi told his guests at Merdeka Palace.

He said he regretted that all the data and information about the actual condition of Indonesia’s oil palm plantations by the Indonesian government and palm oil producers did not receive attention from the EU.

The issue, however, did not affect ongoing talks over the CEPA. Jokowi said he hoped a recently established working group on palm oil would help the two sides find common ground for settling the dispute.

EU-ABC executive director Chris Humphrey said EU businesses had continued to encourage both the European Commission and countries in ASEAN to engage in constructive dialogue on the palm oil issue through the newly formed intergovernmental working group to resolve the misconceptions held by both sides.

"It is our view that the palm oil issue can only be resolved by both sides entering into meaningful discussions and we encourage them to do so. There are misconceptions on both sides that need to be discussed and resolved," he said as quoted from a press statement.

"It is not a ban on palm oil exports to the EU. Equally, the EU needs to do more to understand and appreciate the concerns in Southeast Asia and recognize the advances made on sustainability. Constructive dialogue through the newly formed intergovernmental working group is the only way forward."

The Thursday meeting was part of the council’s annual business mission to Indonesia, which brought more than 30 European companies for meetings with the Indonesian government and local businesses. The European businesses are seeking to expand trade and investment in Indonesia.

New EU Ambassador to Indonesia Vincent Piket told The Jakarta Post recently that dialogue could bridge differences between the two sides.

He said: "The EU recognizes the importance of palm oil for Indonesia, for your economy, employment and livelihoods in the rural parts of the country, and we wish to support that — which is why the EU does not ban any imports of palm oil, at all, and we have no intention to do so."

Piket revealed that, when he presented his credentials to Jokowi last week, the President himself told him that he "wishes to conclude the CEPA talks by the end of next year".

"We are ready to live up to that ambition and aspiration. We think it can be done. It will be hard work but it can be done. When that happens we need to do some ratification but we would create totally new trade and investment relations between Indonesia and the EU."

Coordinating Economic Minister Airlangga Hartarto said after the Thursday meeting that the government hoped the palm oil issue would not affect Indonesia’s relations with the regional bloc.

“The [EU’s] discrimination was [aimed at] biofuel in particular. Indonesia’s biofuel sales in Europe were worth US$650 million and our total trade in Europe was worth about $31 billion. So don’t let the $650 million trade disrupt all trade with the EU,” said Airlangga.

He also reminded the delegation that Indonesia was European airplane manufacturer Airbus' biggest customer, with about 200 aircraft still to be delivered, and explained that the two parties were looking for ways to resolve the palm oil issue.

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