By: Edi Jatmiko )*
The Jokowi-Ma’ruf government again showed its courage by suing the European Union (EU) to the World Trade Organization (WTO). As is known, the EU through RED II policy and Delegated Regulation limits access to palm oil markets and palm oil-based biofuels which have a negative impact on Indonesia.
The Ministry of Trade has officially filed a lawsuit to the European Union to the World Trade Organization (WTO) related to the discrimination of Indonesian palm oil. The government also filed a lawsuit on December 9 in Geneva, Switzerland.
The policy that was sued namely Renewable Energy Directive II (RED II) and Delegated Regulation of the European Union. The policy is considered discriminatory because it limits access to the palm oil and biofuel markets from Indonesia.
As a result, exports of Indonesian palm oil products on the European Union market became negative. On the other hand, the image of palm oil products can deteriorate in global trade.
Minister of Trade Agus Suparmanto said the lawsuit directed at the WTO is evidence of Indonesia’s seriousness in fighting palm oil discrimination by the European Union. The step was taken after it met with associations or business owners of domestic palm oil products.
The decision was taken after going through a process of scientific study and consultation with stakeholders in the palm oil sector and its derivatives.
We need to know that the RED II policy requires the European Union to use fuel from renewable energy from 2020 to 2030. Then in its derivative regulation, Delegated Regulation, palm oil is categorized as high risk Indirect Land Use Change (ILUC).
Thus, biofuel made from palm oil is not included in the European Union’s renewable energy targets, including Indonesia’s palm oil.
However, the Indonesian government has emphasized the objections in this status. So with the lawsuit filed, the government hopes that the European Union will immediately change the policies of RED II and Delegated Regulation. The government also hopes that the European Union can eliminate ILUC’s high risk status for palm oil from Indonesia.
Meanwhile, Director General of International Trade Negotiations Iman Pambagyo added, the lawsuit to the WTO is a step that can be taken by each member country. The lawsuit is filed if the policies adopted by other member countries prove to violate the principles agreed upon by the WTO. Of course we hope that the WTO can provide good decisions and solutions.
In responding to this lawsuit, President Joko Widodo (Jokowi) stated that his party was ready to face lawsuits or protests from other countries as long as it was in the national interest.
Jokowi said, in our national interest, whatever we are protesting by other countries will face. No need to hesitate. Sued by Europe, yes face it, prepare the best lawyer so he can win the lawsuit.
According to the former mayor of Surakarta, protest from a country is something that is common in life and the state. He also emphasized that the most important thing is not to turn. Being sued adds enthusiasm, but don’t lose.
Previously President Jokowi had said, the Indonesian State had for years been very dependent on certain commodities. Like palm oil which is exported CPO, coal is exported raw, and nickel which is still exported in the form of raw material. This certainly makes Indonesia not get any added value from its export activities.
So that, even if he was sued at the WTO, the President claimed that he was not afraid in facing it. He admits that if he is sued, don’t be nervous
Jokowi also said that palm oil discrimination has become a stumbling block in strengthening European economic cooperation with Indonesia, including ASEAN.
Likewise, the Government of Indonesia continues to ensure that palm oil will remain part of the Indonesia-European Union (IEU-CEPA) economic cooperation negotiations.
The Coordinating Minister for the Economy Airlangga Hartarto said, palm oil commodities that received discrimination from Europe, especially for biofuel products. According to him, Indonesia’s biofuel market in Europe reached 650 million US dollars. Meanwhile, the trade value between the Republic of Indonesia and the European Union was US $ 31.
Until now, palm oil is still one of Indonesia’s mainstay commodities and the biggest foreign exchange earner. The contribution of palm oil foreign exchange is not less than coal which reached 18.9 billion US Dollars in 2018.
The courage of the government in the lawsuit is a form of Jokowi’s concern for the fate of the nation in the import-export sector, because the impact of palm oil discrimination is not only on the foreign exchange earned, but also the fate of the workers associated with oil palm.
)* The author is a social political observer