Opposing The Black Palm Oil Campaign Indonesian Government Strengthens Domestic Industry
CIDISS. Indonesia continues to strive to fight the discriminatory policies of palm oil products and their derivatives into Europe. The Europeans have actually given concessions in the form of delaying the Indonesian palm oil ban into Europe until 2030, the trilogic meeting between the Parliament, the Council and the European Commission resulted in compromises regarding the import of palm oil from Indonesia and Malaysia. Previously the European Parliament decided to ban the use of palm oil as a biodiesel mixture in 2021. But the plan sparked protests from both countries.
In essence, the European Union is concerned about the impact of indirect land use change from the palm oil industry that has been converted into biofuels, because it is considered to release more carbon emissions which have an impact on air pollution.
The European Union will provide additional time for Indonesia and Malaysia. The palm oil content in biodiesel will no longer be included in the European Union’s climate goals and the new will be completely banned by 2030. The European Union also decides to maintain import volumes similar to 2019 and will reduce palm oil imports slowly from 2023.
With European Union policies that could threaten the pace of development of the homeland industry, the government turned the brain to find a way so that the results of oil palm plantations that support the domestic economy would not be an economic hindrance. To counter the black campaign carried out by the European Union regarding Indonesian palm exports, the government will strengthen the domestic downstream industry. Because the sale of RI crude palm oil is prohibited, the government regulates strategies to strengthen the downstream industry as an oil palm processing industry to be produced into various processed products. Like, cooking oil, cosmetics, soap, biodiesel detergents, medicines, lubricants to paint.
Professor of the Faculty of Economics and Business of Padjajaran University (Unpad) who is also a researcher of the Indonesian Chamber of Commerce and Industry’s Institute for Economic Research, Research and Development (LP3E) Ina Primiana explained that this strategy was considered a way out of the ban on Indonesian palm imports to several western countries and Europe by European Union.
He explained, when compared to the price of CPO that can be sold raw is only worth US $ 800-1,000 / ton or equivalent to 14,500,000. However, if palm oil is processed for the needs of cooking oil production, the price will increase to US $ 1,000-1,400 / ton or equivalent to Rp. 20,300,000. Meanwhile the oil that is processed to become glycerin, fatty acids, fatty alcohol, methyl ester, palm oil will have a price of US $ 1,400-2,000 or equivalent to Rp.29,000,000.
“We are trying to make the palm oil and its derivatives can be processed and sold abroad. But we are studying whether the item can be sold and there will be no problems later,” he said at the same event.
By: Rikky, S *)
