Indonesia to challenge ‘discriminative’ EU directive on palm oil

Palm oil, mainly produced in Indonesia and Malaysia, is used as feedstock for biofuels as well as being used in a wide variety of goods, ranging from food to soap. (File/Reuters)
Updated 31 January 2019
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Indonesia to challenge ‘discriminative’ EU directive on palm oil

JAKARTA: Indonesia intends to challenge an EU directive on renewable energy at the World Trade Organization, arguing the plan to curb the use of crops that cause deforestation will unfairly target palm oil, a senior Indonesian official told Reuters.
The world’s top producer of the oil is also reviewing its relations with the European Union over the issue and urging other Southeast Asian nations to defer plans to upgrade EU ties, said Mahendra Siregar, special staff at the foreign ministry.
The EU directive, known as RED II, aims to stop the use of crops that cause deforestation in transportation fuel by 2030. Environmentalists blame a rapid expansion of Indonesian palm plantations for a massive clearance of forests that were home to endangered tigers, orang-utans and elephants.
A challenge from Indonesia on the policy would escalate its efforts to safeguard sales to its second-biggest palm oil market. The EU accounted for around 15 percent of Indonesia’s total palm exports of more than $15 billion last year.
Siregar said palm oil will be labelled a “high risk” crop — indicating its potential to result in deforestation — in an act attached to RED II due to be issued in early February. Indonesia will challenge both RED II and the act at the WTO’s dispute settlement body after it is issued, he said.
The WTO body can order members to remove any trade barriers if it finds that the policies breach free trade rules.
A government document outlining Indonesia’s stance on the EU policy and reviewed by Reuters said the method used to assess “Indirect Land Use Change” (ILUC), which aims to measure the risk of unintended carbon emissions, was not internationally recognized and not applicable in a tropical region.
“The criteria listed in ILUC gives advantages to local European Union commodities such as rapeseed oil,” it said.
Indonesia letter to ASEAN
Indonesia’s Foreign Minister Retno Marsudi said in a letter to the Association of Southeast Asian Nations (ASEAN) that developments in the EU hurting the interests of ASEAN palm oil-producing states have caused it to defer “elevation of ASEAN-EU dialogue relations to a strategic level.”
The Jan. 14 letter, also reviewed by Reuters, urged other members of ASEAN to follow suit.
“All Indonesia-EU relationships will be overviewed related to that discriminative policy by the EU,” Siregar said.
Asked about the letter, a spokesman at the ASEAN Secretariat in Jakarta said: “It is up to the member states to decide.”
Rafael de Bustamante Tello, first counsellor at the EU embassy in Jakarta, said: “The EU considers the RED II to be in line with the EU’s international commitments, including its WTO obligations.”
The European Commission will make sure “achievement of the EU’s renewable energy goals goes hand in hand with the fair and rules-based international trade regime that we so strongly defend,” he said.
De Bustamante also said that during an EU-ASEAN ministerial meeting in Brussels last week the two blocs decided to form a new joint working group to address issues related to palm oil.
In January last year, the WTO ruled in favor of Indonesia on several challenges to anti-dumping duties that the EU had imposed on its biodiesel exports. The duties had effectively stopped the trade, but exporters were able to resume shipments to Europe around April.
Palm oil, mainly produced in Indonesia and Malaysia, is used as feedstock for biofuels as well as being used in a wide variety of goods, ranging from food to soap.


Sri Lanka's Muslims fearful of backlash after church attacks

Updated 3 min 29 sec ago
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Sri Lanka's Muslims fearful of backlash after church attacks

  • Intelligence officers ignored warnings, says Islamic body
  • There have been reports of attacks on Muslim homes and businesses

COLOMBO: The people of Dharga Town, Sri Lanka, are familiar with violence and loss. In 2014, anti-Muslim riots killed four, injured dozens and left behind a trail of torched homes and businesses.
Now, almost a week after deadly terror attacks devastated the tropical island, the Muslims in Dharga Town are afraid following Daesh’s claim for the bombings.
“At the end of the day, we have to think about what they (the terrorists) are going to get from this. What have they gained? They’ve lost everything,” 38-year-old businessman M. Imthias told Arab News outside Meera Masjid. “We’ve already been through this, and we know the pain, fear, and emotions they (the Catholics) are going through.”
The Daesh claim, issued through the group’s AMAQ news agency, was made after Sri Lanka said two domestic extremist groups with suspected links to foreign militants were thought to be behind the attacks at three churches and four hotels. More than 350 people were killed and around 500 were wounded in the Easter Sunday violence.
Muslims in Dharga Town fear that efforts to rebuild after the 2014 violence are in vain. Anti-Muslim sentiments are emerging and are fueled by remarks from government officials, such as Defense Minister Ruwan Wijewardena saying the bombings were retaliation for last month’s New Zealand mosque bloodshed.
There have been reports of attacks on Muslim-owned shops, homes, and a mosque in Sri Lanka. There have also been renewed calls to ban the burqa, citing security reasons and Islamist extremism.
But there is also anger toward the National Thawheed Jamath (NTJ), the group initially identified as being responsible for the attacks. Dharga Town residents told Arab News they believed the perpetrators carried out the attacks for personal reasons, not religious ones, as Islam forbids suicide.
The mood in the town is sombre. Shutters are drawn across windows and stores, including supermarkets, are closed. Men gather in small groups along the road, and the area has an increased military presence. People say perpetrators of the assault should face the death penalty.
Around 20 people in Dharga Town belong to the Sri Lanka Tawheed Jamaath (SLTJ), a faction unpopular with the wider Muslim community. Six SLTJ members were arrested on Tuesday afternoon. The mosque — a shack-like structure — did not open for prayers afterwards. Dharga Town residents opposed the SLTJ establishing a community in the area because of their orthodox ways.
“They wanted to build a mosque, but we didn’t allow it. In the end, they built that place with the iron sheets, and conduct their prayers there,” a village elder, who did not wish to be identified, told Arab News. “If they come for prayers, or engage with us in anything, they always try to push their beliefs on us. What they call Islam is completely different from what we practice.”
The NTJ was ostracized by the All Ceylon Jammiyathul Ulema (ACJU), Sri Lanka’s highest body of Islamic scholars. The organization relayed its suspicions about the NTJ to authorities.
“On Jan. 3, we visited intelligence officers and handed over files with all the details of the perpetrators urging them to take necessary action to stop the NTJ. This was completely ignored,” an ACJU scholar said.
The situation in Sri Lanka remains tense, with nightly curfews and reports of bomb threats. There is also confusion after the Defense Ministry said the NTJ was not behind the attacks, leaving the public afraid about the possibility of another splinter group.
But there are calls for calm, too.
“There is no such anger among us,” Sister Manuja, who survived the St. Sebastian Church bombing, told Arab News. The Catholic community would not seek vengeance, she added. “We are very quiet, very simple people.”