Indonesia to Review EU Trade Negotiations



Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - The government plans to review negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement/IEU CEPA). This plan comes after the European Commission's plan to gradually abolish the use of CPO-based biofuel until 2030.

    "In our opinion, the trade negotiation review is very reasonable. The government has considered everything even though we also consider other sectors," Secretary of the Coordinating Ministry for Economic Affairs Susiwijono said on Tuesday, March 19.

    Read also: Minister: Indonesia Temporarily Unable to Sue EU on CPO Ban

    On March 13, the European Commission passed the Delegated Regulation No. C (2019) 2055 Final on High and Low ILUC Risk Criteria on Biofuels. It concludes that oil palm plantations have caused massive deforestation.

    The government said the regulation is a discrimination of Indonesia's CPO commodity.

    "What to be reviewed is up to the Trade Ministry, "What is being up to the Trade Ministry, whether it is tariffs, export commodities there, non-tariff barriers, or anything," said Susiwijono.

    The government also plans to file a lawsuit against the European Union's Delegation Act to the World Trade Organization (WTO) related to the planned ban on CPO as raw material for biofuels. However, Susiwijono said they are still waiting for an official decision from the European Commission.