Indonesia threatens retaliation over EU palm oil ‘intimidation’

Updated 24 March 2019

Indonesia threatens retaliation over EU palm oil ‘intimidation’

  • Earlier this week, Coordinating Minister for Maritime Affairs, Luhut Binsar Pandjaitan, warned that if the EU implements a ban on palm oil imports, Indonesia would retaliate strongly with possible bans on European products
  • Indonesia and Malaysia together produce about 85 percent of the world’s palm oil

JAKARTA: Biofuel producers in Indonesia called on the Indonesian government and European Union to find a “win-win solution” to a dispute over an EU legislation that will phase out palm oil-based biofuel manufacturing in the bloc, risking jobs and billions of dollars in Indonesia's revenue.
Earlier this week, Coordinating Minister for Maritime Affairs, Luhut Binsar Pandjaitan, warned that if the EU implements a ban on palm oil imports, Indonesia would retaliate strongly with possible bans on European products, including passengers jets, train coaches, and motor vehicles.
“We want a win-win solution. Retaliation is not a favorable option but, eventually, what else can we do? It could become necessary if we keep being intimidated,” said Master Parulian Tumanggor, chairman of the Indonesia’s Biodiesel Producers Association.
“If they stop biofuel, millions (of workers and farmers) will become unemployed. We don’t want that,” he added.
Pandjaitan said that with Indonesia’s aviation industry expected to expand threefold by 2034, the country will require about 2,500 aircraft in the next two decades — a big market for European companies.
Aircraft demand from Indonesia is worth more than $40 billion and it will create millions of jobs.
“It’s a matter of survival. If they treat us like this, we will retaliate strongly. We are not a poor country, we are a developing country and we have a big potential,” Pandjaitan said in a briefing with the EU ambassador to Indonesia, Vincent Guerend, and European investors.
Darmin Nasution, chief economic minister, said Indonesia is considering a challenge to the EU legislation via the World Trade Organization, and will seek support from the Council of Palm Oil Producing Countries and the Association of Southeast Asian Nations.
Indonesia and Malaysia together produce about 85 percent of the world’s palm oil.
Foreign Minister Retno Marsudi spoke with her Malaysian counterpart, Saifuddin Abdullah, on the sidelines of Organization of Islamic Cooperation emergency meeting in Istanbul on Friday.
“We agreed to work together to fight against discrimination of palm oil in the EU,” she said via Twitter.
Nasution said palm oil contributed $17.89 billion to Indonesia’s economy in 2018 and almost 20 million workers depended on the plantations for their livelihood.
On March 13 the European Commission adopted new rules on biofuels based on sustainability criteria with a two-month scrutiny period. The EU said “best available scientific data” show palm oil plantations are a major cause of deforestation and climate change.
Palm oil plantations in Indonesia have resulted in massive deforestation on the islands of Sumatra and Kalimantan.
Guerend acknowledged the importance of palm oil to Indonesia in terms of jobs, but said that there was some flexibility in the regulation.
“It will be further modified in a few years’ time. It’s not cast in stone forever as the industry is dynamic, expanding, and reforming, and we take that into account,” he said.
“Our invitation for everyone is to work on sustainability because it’s in everybody’s interest,” he added.


Kabul expects US to share peace deal details

Updated 56 min 18 sec ago

Kabul expects US to share peace deal details

  • Afghan government excluded from all rounds of talks
  • Washington is keen for the deal to be signed before Sept. 1

KABUL: Afghanistan said on Saturday it expects the US to share details of a peace deal with the Taliban before it is signed, having been excluded from all rounds of talks.

US Special Envoy Zalmay Khalilzad has led diplomats through at least nine rounds of talks with members of the armed group in Qatar since last summer.

A deal could pave the way for a complete withdrawal of US troops from Afghanistan and end almost two decades of fighting in the country.

But President Ashraf Ghani’s government has been left out of the talks because of objections from the Taliban, which views his regime as a puppet of the West.

The current round of discussions has been described as crucial because, according to present and former Taliban officials, both parties are expected to soon sign a deal.

“The Afghan government expects that it (agreement) will be shared before it is finalized for signing,” Ghani’s chief spokesman, Sediq Seddiqi, told Arab News.

He said Kabul could not say when the deal would be signed, and that troops’ departure would be condition-based and not based on a timeline set by the Taliban.

“Well, force reduction will be based on conditions, the terrorist threat is potential and we must fight it together for our common safety and in order to prevent any major terrorist attacks on the world’s capitals. 

“We must deny terrorists from holding free ground in Afghanistan and turning it into a safe haven. The presence of some forces, and continued and meaningful support to the Afghan security and defense forces, will be key to our success.”

The Taliban wants all foreign troops to leave Afghanistan within a set timetable and, in return, the group says it will not allow Afghan soil to be used against any foreign country or US interests.

Afghan and US officials have warned against a total pullout of troops because, they argue, the Taliban will try to regain power by force and the country will slide back into chaos after troops leave.

But some say a continued presence will prolong the conflict, as neighboring powers oppose the presence of foreign troops in Afghanistan and see it as a trigger for extremism.

The Taliban could not be reached immediately for comment about media reports, which cited the group’s former and current officials as saying that a deal with Washington was imminent.

“We have an agreement on a timeframe for the withdrawal,” Suhail Shaheen, the Taliban’s spokesman for the Qatar talks, told Pakistan’s Dawn newspaper. “Discussions are now focused on its implementation mechanism. We have had general discussions today,” he added, referring to current discussions in Doha. “Tomorrow, we shall have discussions on the implementation part.”

Another Taliban spokesman said the top US military commander in Afghanistan, Gen. Scott Miller, had taken part in the current talks which, according to some observers, showed the importance of the discussions and the possibility of a final deal.

Washington is keen for the deal to be signed before Sept. 1, weeks ahead of a crucial and controversial presidential poll in Afghanistan. 

Ghani, who is standing for re-election, says the polls are his priority. Some politicians believe that peace will have to come first and that the vote will have to be delayed.

Abdul Satar Saadat, who served as an adviser to Ghani, said the Taliban and US were racing against time as any delay would damage trust between the two and prompt the Taliban to fight for another five years.

“Because of this both sides are doing their utmost to sign the deal, delay the polls and begin an intra-Afghan dialogue like Oslo,” he told Arab News.