Indonesia set for palm-oil boost in EU trade deal

1 4 minutes read

The European Union and Indonesia have concluded talks on the free trade deal that includes zero rows of palm oil exports from a country of Southeast Asia.

The draft agreement, which is described by the European Union Trade Commissioner Marus šefčovič as “a changing games for both economies”, removes Indonesia’s duties on some agricultural food products in the European Union.

The lobby groups have welcomed the European Union COPA and Cogeca to the deal, which will go to the European Council and the European parliament for approval.

However, the rate of zero transmitted on Indonesian palm oil has attracted criticism in the campaign circles.

Under the agreement, palm oil from Indonesia will face a zero tariff within a specific share. The European Union tariff ranges on all imports of palm oil up to 12.8 %. Palm oil shipments in Indonesia are facing the European Union already a 0 % tariff, Just food Understand.

The European Union said that the so -called comprehensive economic partnership agreement, which was announced yesterday (September 23), includes a “protocol” on palm oil, “directed towards increasing the capabilities of CEPA to support trade in sustainable palm oil.”

In a statement, the European Union said: “It does this by creating a platform for dialogue, including organizational developments related to the palm oil sector, and to create a framework to work in a closer way in areas of specific importance to sustain the production of palm oil.”

In response to the news of the agreement, Eddie Martono, head of the Indonesian Palm Oil Association (Gapki), said that the deal was “good news”, but he expressed concern about the planned deforestation regulations in the European Union, or EUDR.

“IEU-ContPa is good news, but if it is not possible to meet Eudr, the zero tariff is useless. Our exports will still hinder,” Martono said in a statement.

In a separate announcement yesterday, the European Commission, the executive arm of the European Union, said it would indicate another delay to enter EUDR into effect.

The regulations were identified in December after they were already paid.

Under EUDR, corporate marketing products including cocoa, coffee and palm oil, as well as foods that contain components, will have to prove that supply chains are free from removal effects.

EUDR, which was first announced in 2021, was scheduled to be applied on December 30 this year, but the committee faced pressure from parts of the food industry to extend the deadline. Brussels agreed to delay for one year last December.

Information technology problems have now pushed the committee to make plans to postpone another period for one year.

Sarkhs, a non -governmental organization that protects forests and the rights of forest people, reaches the deal between the European Union and Indonesia and the possibility of another delay to EUDR.

“The deal is reinforcing an extractive model that has already caused great harm to Indonesia’s forests,” said Perrin Forener, a fern activist. “It does not contain any concrete and expected benefits for those who have lost historically when trade-the original societies, the owners of small holdings and workers. Instead, they enhance the control companies that are already-likely the deputy on the forests of Indonesia.”

“Regardless of any errors in information technology, over the past 12 months, we have seen an uncompromising attempt to remove Eudr. This is part of a broader battle: among those who want to protect the natural world and the life systems that depend on it, and those who intend to destroy it, and are often transferred by self -entry.”

In July, Cadbury Mondelez International called for an additional delay in the rules, on the pretext that the rules should be “applicable” in practice.

However, a joint speech by competing chocolate manufacturers urged Nestle and Ferro the committee to ensure “full memorization, rapid implementation and ambition” from EUDR.

The European Union is primarily released dairy and other animal products to Indonesia. Brussels said that the exports of agricultural foods in the European Union to Indonesia were worth one billion euros ($ 1.18 billion) in 2024. The main agricultural exports in Indonesia to the European Union are palm oil, cocoa and coffee.

FARM EUROPE, a network of agricultural organizations in the region, including FNSEA and Coldireti, said the potential opportunities for export in Indonesia.

“The expected main effect is on Indonesian palm oil exports that will benefit from TRQ free from customs tariffs [tariff-rate quota] And 3 % tariffs of shares. This is the main Indonesian agricultural export. Regarding European potential export opportunities, the expected effect is somewhat limited. “Indonesia mainly imports soybeans, beef, dairy products, wheat and rice to cover the local deficiency,” said Europe in a statement.

“The European Union will face strong competition for the beef from Brazil, Australia and the United States. The dairy, from New Zealand. On wheat from Russia, the United States. The European Union does not issue soybeans, and on rice, it cannot compete against Southeast Asia.”

“Indonesia, which was appointed in the Palm-YIL deal in the European Union’s commercial deal” was originally created by JUUST FOOD, a brand owned by Globaldata.

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2025-09-24 14:20:00

1 4 minutes read