Indonesia Seriously Strengthens ISPO, Foreign Minister Retno Asks EU To Be Fair About Indonesian Palm Oil

Head of European Union Foreign and Security Policy Josep Borrell together with Foreign Minister Retno Marsudi. (Ministry of Foreign Affairs)

JAKARTA - Indonesian Foreign Minister Retno Marsudi asked the European Union (EU) to be fair regarding the issue of Indonesian palm oil exports, as well as speed up negotiations between Indonesia and the EU CEPA (European Union, Comprehensive Economic Partnership Agreement)

This was conveyed in a meeting with the Head of Foreign and Security Policy of the European Union, Josep Borrell, in Jakarta, Wednesday, June 2. Foreign Minister Retno said it was important to build fair, non-discriminatory and open economic and trade cooperation to help accelerate economic elections.

"HRVP Borrell and I discussed the issue of Indonesian palm oil again. Indonesia's request is simple, so that Indonesian palm oil is treated fairly," said Foreign Minister Retno Marsudi in a virtual press statement, Wednesday, June 2.

"I convey the seriousness of the Government to produce palm oil in a sustainable manner and continue to strengthen ISPO," continued Foreign Minister Retno Marsudi. The Indonesia Sustainable Palm Oil System (ISPO) is a Government policy in increasing the competitiveness of Indonesian palm oil in the world.

Indonesia's meeting with the European Union. (Ministry of Foreign Affairs)

Previously, the European Union Ambassador to Indonesia Vincent Piket said that his party did not impose restrictions or embargoes, prohibiting the export of palm oil from Indonesia to Europe.

"In the first 10 months of last year, palm oil exports from Indonesia to Europe rose by 27 percent in value. In terms of volume, it increased by about ten percent," he said in a discussion entitled 'EU and Indonesia: A Look Back at 2020 & Look Ahead to 2021' last January.

However, he acknowledged that there was a debate about Indonesian palm oil. However, he ensured that the European Union remained open to Indonesian palm oil exports, while setting up a discussion group to discuss the issue.

It is known, a number of European countries have imposed restrictions on the use of palm oil, because palm oil farming in Indonesia is considered damaging to the environment. In fact, oil palm is included in a commodity that includes indirect land use change (ILUC) which has a high risk of land use change and deforestation.

The categorization is based on the Renewable Energy Directive II made by the European Union. Because of this regulation, biodiesel, which is based on palm oil, is not included in the European Union's list of renewable energy.