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View all search resultsIndonesia has the opportunity to wrap up a long-delayed free trade deal with the European Union after the bloc officially placed Indonesia in its “standard-risk” deforestation law category, a step seen by businesses as a signal that could boost exports of palm oil, coffee, cacao and other commodities.
Countries including Brazil and Indonesia, which have historically had among the world's highest rates of deforestation, will be labelled as "standard risk", which means they will face lighter compliance checks on goods exported to Europe.
The industry association has warned that increasing the export levy from currently 7.5 percent to 10 percent next year could make Indonesian CPO less attractive, especially in view of the government’s plan to launch the B40 biodiesel program in January amid stagnant production.
Allowing such negative information to linger on could validate the perception as to just how bad has been the public-sector and corporate governance of the country’s natural resources, notably the lucrative palm oil industry.
Crude palm oil (CPO) production in Indonesia, the world’s biggest palm oil producer, increased by just 0.75 percent year-on-year (yoy) to 3.8 million tonnes, the latest data from the Indonesia Oil Palm Producers Association (Gapki) show.
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