Indonesia Seeks Support from Netherlands Against EU Anti-deforestation Policy

TEMPO.CO, Jakarta - Indonesia has sought the Netherlands' support against the European Union's (EU's) anti-deforestation trade policy that could negatively impact Indonesian farmers.

"We ask for support from the Dutch government to minimize barriers for Indonesian products that have met sustainable standards to enter the EU," Trade Minister Zulkifli Hasan said on Saturday, August 26, 2023.

Trade between Indonesia and the EU has huge potential, but it could be hampered by the EU's anti-deforestation regulation (EUDR), he added.

According to him, EUDR has the potential to negatively impact the exports of Indonesia's flagship products such as palm oil, coffee, rubber, and timber.

Indonesia and the Netherlands are also pushing for the completion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations in 2024.

"The negotiator team is looking forward to settling the negotiations. Indonesia also hopes that the Dutch government can support these efforts," Hasan said.

Meanwhile, the ministry's director general of international trade negotiations, Djatmiko Bris Witjaksono, said that the implementation of IEU-CEPA is projected to increase the value of trade and investment between Indonesia and the EU.

"The Netherlands is Indonesia's largest export destination in Europe, so the implementation of this comprehensive trade agreement will be mutually beneficial for business players in both countries," he said.

The total trade between Indonesia and the Netherlands in January–June 2023 was recorded at US$2.35 billion.

During the period, Indonesian exports to the Netherlands totaled US$1.87 billion and Indonesia's imports from the Netherlands reached US$484.9 million.

In 2022, the total trade between the two countries reached US$6.23 billion, a 13.8-percent increase compared to US$5.48 billion the previous year.

Indonesia's main exports to the Netherlands include industrial monocarboxylic fatty acids, palm oil and its fractions, palm kernel and other solid residues, and copra.

ANTARA

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