Indonesia threats to boycott EU's planes, other products if CPO ban applied

Source: Xinhua| 2019-03-20 23:48:48|Editor: Mu Xuequan
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JAKARTA, March 20 (Xinhua) -- The Indonesian government will boycott European Union (EU)'s planes, vehicles and other products if it bars the country's crude palm oil (CPO) to be used as raw materials for bio-fuel, a senior minister said here on Wednesday.

The move came after the European Commission passed delegated act classifying CPO as a product that is not sustainable, which leads to prohibition of the commodity as raw materials for bio-fuel. The act will be brought to the European Parliament which will decide within two months whether to enforce it or not.

Indonesian Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said that should the delegated act take effect, it will be possible that products from Europe, including aircraft, vehicle and others, will be banned from entering the Indonesian market.

Chief Economic Minister Darmin Nasution on Wednesday termed the EU's move as the hidden protectionism.

"In the world's history, there is no reason to only target one commodity while there are many others in its group. (But) only palm oil is targeted. It is no doubt that it is a discrimination...," said Nasution.

Indonesia's shipment of palm oil offshore grew eight percent to 34.4 million tons in 2018, according to data from the Indonesian palm oil association.

The export comprised 32 million tons of palm oil and kernel oil. The remaining was oleochemical and bio-diesel fuel, it said.

Indonesia, the world's largest producer of palm oil, logged a record output of palm oil of 42 million tons in 2018, according to the association.

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