TEMPO.CO, Jakarta - Coordinating Minister of Economic Affairs Darmin Nasution said that the Indonesian government is yet able to sue the European Union to the World Trade Organization on plans to prohibit products derived from crude palm oil (CPO), such as biofuel.
The lawsuit could only be filed after the regulation is thoroughly agreed by the European Union Parliament, said Darmin after meeting with the Indonesian Palm Oil Producers Association (Gapki) at the Economic Affairs Coordinating Ministry in Central Jakarta yesterday.
The regulation itself, once it takes effect, will only be effective in 2030. The ban on CPO products is driven by concerns of CPO plantations contributing to deforestation.
Minister Darmin said that Indonesia is not arguing about the ban itself, but the discrimination shown by the European Union.
“Because it has been led to target CPO since its inception,” said Darmin.
However, European Union Ambassador for Indonesia Vincent Guerend asserted that the EU has no intentions to discriminate Indonesia’s CPO products and said that sustainable plantation standards were also imposed on alternate sources used in biofuel such as corn and soybean.