Thursday, 27 February 2020

Indonesia Fights CPO Discrimination; Threatens to Boycott Airbus



Laila Afifa

  • Font:
  • Ukuran Font: - +
  • TEMPO.CO, Jakarta - The government fights back to the European Union's discrimination against Indonesia's oil palm and derivative products. Indonesia increases pressure against the EU, threatening to stop importing Airbus and turn to Boeing.  

    Trade Minister Enggartiasto Lukita said the boycott threat becomes necessary as the EU continues to question and inhibit imports of crude palm oil (CPO) and derivative products from Indonesia.  

    Minister Enggar said after diverting demands for alcoholic beverages, fruits, and dairy products from the EU, Indonesia is ready to add aircraft products to the list.

     "We will order from Boeing instead of Airbus. I have told Rusdi Kirana about it, and he agrees. As a nation, we must not let ourselves be treated like this," he said reported, August 23. 

    The minister added that the process of switching orders from Airbus to Boeing will be discussed with concerning parties first. He wants to convince business actors and relevant parties in the sector that the move is an effort to fight against the EU's discrimination.

    He continued to say that the EU's constant attack on Indonesian CPO is a prove of protectionism. Enggar said this was done in purpose by the EU to protect their homegrown bio-oil products.  

    "We must give a strong signal that Indonesia can also enact import barriers against EU products. They started this protectionism step first," Enggar argued.

    Recently, the EU accused Indonesia to have applied subsidies in the production and export process of biodiesel products in the EU.

    The minister said that in the near future Indonesia will focus on implementing import diversion on dairy products and fruits from the EU. His ministry is in talks with the Food and Beverage Association (Gapmmi) about the chances of importing dairy and fruit products from the United States, Australia and other producing countries.