JAKARTA, Oct 3 (Askume) – Indonesia said on Thursday the European Commission’s proposal to delay the implementation of an anti-deforestation law was a good step but the more important issue was the implementation of the rules rather than the timetable.
Economy Coordinating Minister Airlangga Hartarto told Askume the EU should scrap its own national deforestation standards, with the commission classifying countries as high risk, standard risk or low risk for compliance.
The European Union Deforestation-Free Regulation (EUDR) prohibits the import of a number of items related to deforestation into the EU.
Indonesia, the world’s biggest palm oil producer and exporter, has long criticised the law, arguing it harms small farmers and discriminates against the palm oil industry.
By 2023, the EU will become Indonesia’s fourth largest export market, accounting for 11.5% of Indonesia’s palm oil exports.
“It is not a question of delay, it is a question of implementing the rules,” said Airlangga, who added that the ideal period for any moratorium would be two years, not 12 months.
“The EU has no right to be a rating agency,” he said.
However, the Indonesian Palm Oil Association GAPKI welcomed the proposal to delay the implementation of the law, saying it would give the industry more time to prepare.
“We will continue to advocate against regulations that are onerous or inconsistent with Indonesian law… the EU should also understand our conditions,” Gapki chairman Eddy Martono told Askume.
Malaysia, the world’s second-largest palm oil producer after Indonesia, has also strongly opposed the EU policy, saying it deliberately raises costs and barriers for its palm oil industry.
The Malaysian Palm Oil Council on Thursday described the move as a wise decision that will help global supply chain compliance.
Malaysia’s Ministry of Commodities and Plantations did not immediately respond to a request for comment.
Indonesian Minister Airlangga said the country opposes the use of geographic tags for product traceability. He also urged the EU to recognize the existing mutual recognition agreement on palm oil sustainability.
