May 26, 2023
Indonesia and Malaysia have agreed to visit the European Union (EU) in a joint mission to Brussels, Belgium, on 30-31 May 2023. This mission will bring up several issues related to EU regulation that could threaten the sustainability of Indonesian and Malaysian several commodities (palm oil to rubber).
Starting from anti-deforestation regulations, which will also threaten exports of coffee, cocoa, cattle, timber, rubber, and soybeans, as well as chocolate and downstream consumption of palm oil derivative products. Until the regulatory plan prevents greenwashing or green industry fulfillment claims, to the issue of forced labor.
Head of Foreign Affairs of the Indonesian Palm Oil Association (GAPKI) Fadhil Hasan, Friday (26/5/2023), said that the joint mission of the Indonesian and Malaysian governments conveyed the attitude of the two countries through the Council of Palm Oil Producing Countries (CPOPC) regarding EUDR (EU Deforestation Regulation/ Law).
As is known, Indonesia is the world’s largest producer of palm oil, followed by Malaysia in the second place. According to Fadhil, several issues will be conveyed through CPOPC related to Indonesia and Malaysia’s stance regarding EUDR. Through CPOPC, the two countries asked for several issues related to categorizing high-risk, low risk and neutral countries not to be applied unilaterally and that Indonesia and Malaysia be included in the low-risk category.
In addition, he said, CPOPC asked the EU to recognize Indonesia and Malaysia’s sustainability certification and traceability systems. Apart from that, the two countries also requested that smallholders be excluded and that the EU would recognize Indonesian Sustainable Palm Oil (ISPO), Malaysian Sustainable Palm Oil (MSPO) to other commodities national sustainability certification and traceability system.
Fadhil said that the EU also plans to issue forced labor regulations. EU steps can be categorized as restrictions or trade barriers.
Joint Mission Agenda
Coordinating Minister for the Economic Affairs Airlangga Hartarto will lead the Indonesian delegation. Meanwhile, Malaysia will be led by the Deputy Prime Minister/Minister for Plantations and Commodities Malaysia, H.E. Dato’ Sri Haji Fadillah Bin Haji Yusof.
CPOPC, in a written statement posted on its official website Friday (26/5/2023), stated that in light of the recent developments of the EU Deforestation Regulation (EUDR), which will have a negative impact on the palm oil industry and exclude smallholders from the supply chain, CPOPC organized a Joint Mission of producing countries to Brussels, 30-31 May 2023.
As well as meeting Commission officials and European Parliament Legislators, the joint mission will meet key players in the EU’s palm oil industry and civil society organizations. According to the CPOPC statement, the meeting will also discuss topic related EU plans to develop other proposed laws requiring stakeholders’ attention in the palm oil industry, such as the Forced Labor Regulation (forced labor) and the Green Claims Directive (green claims). , and Renewable Energy Directive (RED/renewable energy direction) III. ***
source: cnbcindonesia.com