Gapki: Indonesian CPO Products Difficult To Enter The European Union Because The Price Is Very Cheap

Illustration. (Photo: Doc. Antara)

JAKARTA - Chairman of the Positive Campaign Division of the Indonesian Palm Oil Entrepreneurs Association (Gapki) Edi Suhardi said that one of the reasons palm oil (CPO) and its derivative products were difficult to enter the European Union was because the price was very cheap.

Other CPO and agricultural products such as coffee, chocolate, rubber and wood cannot enter the European Union as early as 2025 or since the implementation of EU deforestation policy regulations (EUDR).

According to Edi, this was deliberately done because the European Union was unable to compete with CPO products.

"Both CPO, its derivative products are very cheap and very competitive products, cannot compete with European Union products," said Edi in Jakarta, quoted from Antara, Thursday, August 29.

The European Union owns processor plantations to produce vegetable oils from sunflowers and rappers.

Edi said that it takes a lot of money to produce vegetable oil, so that the price is not able to compete with the CPO.

"The cost of production and the price of raw materials for the process is much more expensive, so palm oil becomes an overcompetitive commodity and cannot be competed through free trade. One of them prevents the entry of palm oil and products from wearing trade barriers," said Edi.

Furthermore, there are three obstacles that make it difficult for palm oil to enter the European Union, namely the imposition of import duties anti dumping (BMAD), import duties that accuse palm oil of being subsidized unfairly and the policy of EUDR regulations.

Edi appreciated the steps taken by the Government to bring this case to the World Trade Organization (WTO) or the World Trade Organization to fight for Indonesia's right to palm oil sales.

"Indonesia is the most proactive in palm oil, although we are competing with Malaysia," said Edi.