InfoSAWIT, KUTA – The government of Indonesia would prepare to face and sue European Union (EU) about the Renewable Energi Directive (RED) II and the implementation of Delegated Regulation (DR) to the World Trade Organization (WTO).
The plan of the claim is revealed because the both would directly influence palm oil industries in Indonesia. This was told by Head of Trade Advocacy Bureau, Ministry of Trade, Sondang Anggraini in the forum group discussion in Kuta, Bali, Monday (7/10/2019).
“The government of Indonesia has to prepare the regulation of RED II because it negatively influences palm oil industries in Indonesia. It is important for us to know more preparation and the legal in Indonesia to face the implementation of EU-RED II,” she said in the official statement to InfoSAWIT recently.
The regulation in RED II was announced in 2018 and has the negative for palm oil industries in Indonesia. then in March 2019, the EU Commission declared the EU Commission Regulation which relates biofuel within the Indirect Land Use Change (ILUC).
In the document, it written that ILUC happens if in the biofuel production, the land is conversed to be biofuel plantation. This triggered the forest conversion or there would be increasing emission.
Some regulations in RED would run on January 1st, 2021. Every member of EU would implement it in the domestic country in June 2021. In 2030, every target in EU-RED II should be realized, that is, there would be no biofuel from the material which is potential to make high risk to the climate change and food security.
She also mentioned that in this case, there are two of discriminatory that the government of Indonesia should study. The first is the discriminatory that EU runs to palm oil in Indonesia with the material product from other countries, such as, soybean. The second is the discriminatory that EU runs to palm oil with the material products from EU. So the government of Indonesia should prepare the strategic ways to face the issues.
In the forum, it was discussed about the ways that the government of Indonesia would do to face the implementation of RED II and the impacts. “The impacts of RED II and DR to palm oil from Indonesia are the decreasing exports to European countries. Indonesia would loss the important markets to palm oil and decrease the demands which could decrease the price of palm oil. It is hoped that there would be ‘snow ball effect’ on the EU policy,” she said.
Knowing the effects of RED II which are serious to palm oil industrial development in this country, she told some so that the government could do, such as, continuing research about ILUC as the base to claim to WTO, analyzing deeper the adjustment of RED II and DR the regulations in WTO, arranging the economic impact if there would be biofuel phase-out biofuel in EU in 2021, mapping the key players about the pro and contra to palm oil, arranging and doing campaigns about palm oil positively. (T2)
