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Indonesia warns EU on palm oil draft and thinks about future relations

Staff Writer |
Indonesia slammed the European Commission's adoption of a draft regulation to phase out the use of palm oil in renewable transportation fuel.

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The European Commission last week concluded in a draft regulation that palm oil cultivation causes excessive deforestation and its use in biofuels will be reduced to zero by 2030.

Indonesia, the world's largest palm oil producer, argues that rather than promoting sustainability in the vegetable oil sector, the regulation is more about protecting and promoting the European Union's home-grown vegetable oils.

"The president of Indonesia has expressed concern on the wider trade and investment relations with the EU should the discrimination against palm oil be confirmed," Indonesia's Coordinating Ministry for Economic Affairs said in a statement.

Indonesia is "examining bilateral relations with member states that have been most supportive" of the regulation, it said. The EU parliament and the bloc's governments have two months to decide whether to accept or veto the regulation.

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