Indonesia Warns to Retaliate against Possible CPO Export Restrictions

Jakarta, MINA – Indonesian Trade Minister Enggartiasto Lukita said on Monday that Indonesia had set plans to retaliate possible restrictions on the nation’s Crude Palm Oil (CPO) exports to European Community (EC) and the United States, Xinhua reported.

Speaking after his meeting with Vice President Jusuf Kalla, Lukita said he had asked for the mandate to implement the retaliation plans against countries supporting the restrictions.

“If they remained adamant with their stances, as the head of negotiator team I must have the mandate to apply the plans. If they continue to disrupt us, we can do the same thing to them, as simple as that,” the minister said, hinting that the retaliation may take various forms, including barriers for their products to enter Indonesia.

Lukita, who has been actively negotiating with his counterparts in related countries on the restrictions of Indonesian crude palm oil, said that he planned to invite Malaysia in carrying out the retaliation plans.

Indonesia and Malaysia are the world’s largest and second largest CPO producers which may get severe impacts from the restrictions.

The EC parliament has ratified the Palm Oil and Deforestation of Rainforest resolution in April last year, prompting more difficulties for exports of Indonesian and Malaysian CPO and derived products to European countries.

The resolution would phase out EC imports on CPO over green concerns.

Elsewhere in the United States, Indonesia is also facing risk from the U.S. government’s protectionism drive.

Indonesia’s biodiesel export to the United States may face serious issue should the U.S. government review its subsidy allocation for biodiesel import, which has been benefiting Indonesia at present.

The United States is a prospective export destination market for Indonesia’s CPO and derived products, including the biodiesel, with increasing demands of up to 9 percent last year.

The EC has been one of the largest importers, taking up to 15 percent of Indonesian CPO exports. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)