Palm Oil Export to Europe Up by 20% despite Negative Campaign

16.05.2017

Trade Minister Enggartiasto Lukita said that Indonesia’s palm oil export to Europe has increased despite European Union’s moratorium on the export of the commodity.

“Crude palm oil export to Europe and the Americas increases this month, around 15-20 percent,” Enggartiasto said yesterday in Jakarta when accompanying Vice President Jusuf Kalla in a meeting with Italian Economic Development Minister Carlo Calenda.

Enggar said that the increase in export volume despite the EU’s negative campaign shows that Europe and the Americas need palm oil. Indonesia, however, must prepare for the impact that the campaign will have on the industry.

Indonesia has been at the receiving end of Europe’s sustained negative campaign against palm oil. Enggar pointed to a campaign that palm oil contains high cholesterol.

Europe now undermines the palm oil industry through environmental and deforestation issues. Despite the lack of impact on export, Indonesia needs to take a stance. “Actually, environmental issues do not affect exports, but if left unaddressed, it could be harmful. Repeated negative campaign will have a harmful impact,” Enggar said.

The moratorium on palm oil export was discussed by VP Kalla and Mr. Calenda. The latter said that Italia will help resolve the problem since it was also part of the negotiation of Indonesia-EU CEPA (Europe Union-Comprehensive Economic Partnership).

Enggar said that the government is expecting to conclude the Indonesia-EU CEPA negotiation this year. However, he admits that palm oil issues may hamper the negotiation.


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