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Indonesia Ready to Conduct a Trade War with the European Union on Crude Palm Oil
Written by Ani Hasanah
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Minister of Trade Enggartiasto Lukita in his press briefiing
VOI-ANDY
The Indonesian government insists it will be ready to conduct a trade war if crude palm oil products are rejected by countries in Europe. This was stated by Trade Minister Enggartiasto Lukita, Tuesday in Nusa Dua, Bali, on the sidelines of the Indonesia Africa Forum 2018.
The Minister of Trade affirmed that the Indonesian government will begin to limit imports of commodities from Europe if Europe has begun to limit the export of crude palm oil. According to him this step has been conveyed to Vice President Muhammad Jusuf Kalla and will be done in coordination with various related parties, including the business world. Nevertheless Enggartiasto Lukita explained the step of trade war is the last step that will be done because it will not benefit all parties.
"Yesterday at the Vice President's office we have all been called. This will be done later in coordination including involving other Ministries / Institutions as well as from the business world. Because we are not only defensive but we will also do offensive efforts. So the trade war will start when you ban like that. There is a saying you scratch my back I scratch yours, that's it. So if you do that I'm ready. But we all let us realize that the trade war is nothing to gain. We do not want to start it, "Trade Minister Enggartiasto Lukita said.
Previously it was reported the EU Parliament plans to ban the use of crude palm oil in its member countries because it is considered not to be environmentally friendly.
It threatens the export of CPO from Indonesia to European countries, because palm oil and its derivative products cannot be exported.
The EU Parliament claims to entirely impose oil palm-free by 2021, with the approval of a renewable energy bill.
As much as 46 percent of the total imports of palm oil by the European Union are used for biodiesel. It is feared to have adverse environmental impacts, including being considered to be the cause of deforestation in Asian and Latin American countries. (VOI / Andy / AHM)
