Jakarta, CNN Indonesia — Indonesian government will team up with Malaysia in facing the result of the EU Parliament resolution to implement the principles of healthy trade cooperation.
The Minister of Trade, Enggartiasto Lukita, said that it was related to the EU Parliament stance by issuing a resolution on palm oil and the ban on palm oil-based biodiesel because it is considered to create many environmental problems.
According to him, the resolution would disrupt the trade relations between Indonesia and the European Union whereas the market share of Indonesia and Malaysia has been dominating about 85% of the global palm oil market so far.
“We object it because we have made an attempt by taking a sustainable procedure such as ISPO, SLVK, and so on,” said Enggar in the Ministry of Trade, on Monday (17/4).
He considered the decision of the EU Parliament was unfair because the production process in the vegetable industry of the EU itself was not much different with the production of palm oil in Indonesia.
If the resolution caused Indonesian palm oil to face problems, then it could be said that the EU implemented unhealthy trading principles because it only benefited their own vegetable oil products.
“We will actively invite all countries in the world to make all vegetable oils to have the same standard. The government and the entrepreneurs are serious. Therefore, we will fight it by all means including by teaming up with Malaysia who has similar problems with us,” he said.
He also added to not let the resolution led to a trade war where each country ban the entry of goods from another country.
“If retaliation happens, it means a trade war. They do not want the trade war to happen, but they start it. It reminds me to the EU Parliament. If they really want to trade without double standard, we have started with ISPO. They have applied SLVK for timber, but not all of them. Our parliament can also do the same thing,” he said.
The EU Parliament has considered the Indonesian palm oil causing many issues such as deforestation, corruption, child labor, and human rights violation. The EU even prohibited Indonesia to export its palm oil and biodiesel to other countries. (gir)