In July 2022, Indonesia, along with other countries affected by the EU’s decision to no longer consider palm oil as a green fuel, submitted a joint letter of objection to EU leaders, the Indonesian Ambassador to the Kingdom of Belgium and the European Union, Andri Hadi, informed.
The letter highlighted Indonesia's position as an open country that supports deforestation-free and environmental preservation regulations, he noted at the Indonesian Palm Oil Conference (IPOC) here on Thursday.
Indonesia is primarily promoting the fact that the cultivation of commodities such as palm has an important role in the achievement of sustainable development goals (SDGs), including supporting small farmers, he explained.
The challenges faced by the palm industry in the future will not be easy. In addition to the World Trade Organization’s stringent regulation on palm, it will need to adhere to several regulations, such as the regulation on deforestation and environmental preservation.
According to Hadi, despite the stringent regulations, the EU needs a significant amount of palm oil from countries such as Indonesia and Malaysia.
Indonesian palm oil accounts for 30–40 percent of the EU's imports of vegetable oil, he informed.
The demand for crude palm oil (CPO) products has continued to rise, especially since the start of the Russia-Ukraine War, due to supply chain disruptions and global post-pandemic recovery, he said.
Palm oil can help meet the EU's demand for vegetable oil and ensure the region's energy security, he added.
Meanwhile, General Chairperson of the Indonesian Palm Oil Association (Gapki) Joko Supriyono said that after two years of the pandemic, the palm oil industry is facing extraordinary challenges due to changes in the global economy.
The issues are not yet over since new problems, including geopolitical events such as the Russia-Ukraine war and economic as well as food recession forecasts, are still haunting palm oil-producing countries, he added.
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Translator: Subagyo, Fadhli Ruhman
Editor: Sri Haryati
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