European Union Is Considered As Fickle, Republic Of Indonesia Is Optimistic In Winning Palm Oil Discrimination Lawsuit At WTO

JAKARTA – The government through the Deputy Minister of Trade (Wamendag) Jerry Sambuaga believes that Indonesia can achieve positive results regarding the palm oil discrimination lawsuit with the European Union over the Renewable Energy Directive (RED) II and Delegated Regulation (DR) policies at the world trade organization WTO.

"We are waiting for the process because it has been carried out since 2020. I am the head of the delegation. It is clear that our position is to question why our palm oil is discriminated against,” he said in Jakarta, quoted on Tuesday, June 21.

According to Jerry, Republic of Indonesia has firmly questioned the European Union's policy of blocking Indonesia's palm oil products.

“As a sovereign country, we have the right to export wherever we want, wherever we go. Therefore, once again, what we prioritize is equality, equal opportunity, equality in terms of being able to fight for our exports and commodities, namely palm oil," he said.

Jerry also believes that the lawsuit process, which will continue in the second half of this year, can bring fresh air to the national agro industry.

"We are optimistic that we will win. I may not be able to fully convey this considering that this is still a process, but the point is that the Indonesian delegation has a strong position because their arguments are not strong and their right to discriminate is not based on any basis," he explained.

The bargaining position in Indonesia's favor is also supported by the European Union's perceived inconsistent attitude towards the palm oil issue.

“I see the European Union as inconsistent. Why? Because they always suggest openness, fair trade, openness. Well, that means all commodities have the right to be traded or have the right to enter. We want to make sure that everything goes according to principle. So I am sure we will win and that is Pak Jokowi's direction to fight for the national interest," said Jerry.

For information, the policy of prohibiting the import of palm products from Indonesia is recorded in a report from the Central Statistics Agency (BPS) which mentions a decline in exports in May 2022.

BPS noted that Indonesia's exports last month amounted to USD  21.5 billion, a decrease of around 21.2 percent from April 2022.

"Palm oil has decreased due to the export ban," said Deputy for Distribution Statistics and Services at BPS Setianto in his presentation last week.