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.


At least 28 killed in Afghan mosque blast

Updated 48 min 35 sec ago

At least 28 killed in Afghan mosque blast

  • The explosion took place in Haska Mina district of eastern Nangarhar province, and wounded at least 55 people
  • The dead were “all worshippers”

JALALABAD: At least 28 worshippers were killed and dozens wounded by a blast inside an Afghan mosque during Friday prayers, officials said, a day after the United Nations said violence in the country had reached "unacceptable" levels.
The explosion, which witnesses said collapsed the mosque's roof, took place in eastern Nangarhar province and wounded at least 55 people, provincial governor spokesman Attaullah Khogyani told AFP.
He said the dead were "all worshippers" in the blast in Haska Mina district, roughly 50 kilometres (30 miles) from the provincial capital Jalalabad.
A doctor at a hospital in Haska Mina gave a slightly higher toll, telling AFP that "around" 32 bodies had been brought in, along with 50 wounded.
There was no immediate claim of responsibility. Both the Taliban and Daesh are active in Nangarhar province.
Witnesses said the roof of the mosque had fallen through after the "loud" explosion, the nature of which was not immediately clear.
"Dozens of people were killed and wounded and were taken in several ambulances," Haji Amanat Khan, a 65-year-old local resident, told AFP.
The blast came after the UN released a new report on Thursday saying an "unprecedented" number of civilians were killed or wounded in Afghanistan from July to September.
The report, which also charts violence throughout 2019 so far, underscores how "Afghans have been exposed to extreme levels of violence for many years" despite promises by all sides to "prevent and mitigate harm to civilians".
It also noted the absurdity of the ever-increasing price paid by civilians given the widespread belief that the war in Afghanistan cannot be won by either side.
"Civilian casualties are totally unacceptable," said the UN's special representative in Afghanistan, Tadamichi Yamamoto, adding they demonstrate the importance of talks leading to a ceasefire and a permanent political settlement.
The figures - 1,174 deaths and 3,139 injured from July 1 until September 30 - represent a 42 percent increase compared to the same time period last year.
The UN laid most of the blame for the spike at the feet of "anti-government elements" such as the Taliban, who have been carrying out a bloody insurgency in Afghanistan for more than 18 years.
July alone saw more casualties than in any other month on record since the United Nations Assistance Mission in Afghanistan (UNAMA) began documenting the violence in 2009.
The first six months of 2019 had seen casualties drop slightly compared to previous years.
But the violence has surged so far in the third quarter that it yanked the overall total for the year back on par with the bloodiest since NATO withdrew its combat forces at the end of 2014.