• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Indonesia Threatens to Ban European Goods as Palm Row Escalates

Indonesia Threatens to Ban European Goods as Palm Row Escalates

Indonesia Threatens to Ban European Goods as Palm Row Escalates
March 25, 2019
Bloomberg

Indonesia threatened to ban imports of goods from the European Union in retaliation for the bloc’s move to impose stricter limits on how palm oil can be used in green fuels.

The world’s largest palm oil producer is considering such a step to protect the interest of almost 20 million people, whose livelihood is tied to the commodity, Indonesia’s Coordinating Minister for Maritime Affairs Luhut Pandjaitan told reporters in Jakarta last week. The minister hinted that jets manufactured by European companies could be among the target for boycott, saying the country would require about 2,500 aircraft in the next two decades.

“There are a lot of European products that we need,” Pandjaitan said. “We have 269 million people in Indonesia. We have a big market.”

Palm oil has emerged as a flashpoint in a potential trade war between the European Union and top producers Indonesia and Malaysia, which together account for about 85 percent of global supply. The European Commission this month restricted the types of biofuels from the vegetable oil that may be counted toward its renewable-energy goals. The proposed EU curbs have weighed on benchmark palm prices, which have fallen for five quarters in a row.

Indonesia is also planning to lodge a formal protest with the World Trade Organization if the European Union ratifies the proposal, Coordinating Minister for Economic Affairs Darmin Nasution said. Palm oil was not just an export earner for Indonesia as it was instrumental in lowering poverty and therefore meeting a key criteria of the sustainable development goals, he said.

Scrutiny Period

The EU argues the new measure and palm-oil sustainability criteria are compatible with WTO rules. The new regulation is now set for a two-month scrutiny period when the bloc’s member states and the European Parliament can express objections. If none is received, the measure will be published in the EU official journal and become a law.

The EU renewable energy law obliged the commission last year to set sustainability criteria for palm under its green goals. It specifies that the use of unsustainable food and feed crop-based biofuels should be limited from 2019 and a gradual phase-out should start in 2023, leading to a ban by 2030.

“We are concerned that this discriminatory act will surely affect the long-standing bilateral relationship between Indonesian and the EU, and further delay the conclusion of the Indonesia- European Union Comprehensive Economic Partnership Agreement,” Nasution said in a statement.

The move was required by a broader law agreed by the 28-nation bloc last year, when the European Parliament pushed for curbs on the use of palm oil on concerns its production caused deforestation and aggravated climate change.

The EU wants to lead the battle against global warming and has toughened goals to reduce greenhouse gases blamed for climate change. It aims to cut emissions by at least 40 percent by 2030 compared with 1990 levels, boost the share of renewable energy to 32 percent and increase energy efficiency by 32.5 percent.

Indonesia will continue to collaborate closely with other palm oil producing countries as well as the Association of Southeast Asian Nations framework to promote palm sustainability and establish a common position against the discriminatory action of the European Commission, Darmin said.

RELATED CONTENT

RELATED VIDEOS

Global Supply Chain Management Global Trade & Economics Regulation & Compliance Supply Chain Security & Risk Mgmt Sustainability & Corporate Social Responsibility Consumer Packaged Goods Food & Beverage
KEYWORDS Asia Pacific consumer packaged goods Europe Food and Beverage Global Supply Chain Management Global Trade & Economics Regulation & Compliance SC Security & Risk Mgmt sustainability
  • Related Articles

    Nestle, European Retailers Make Progress in Talks to End Price Row

    EU Looks to Ban Single-Use Plastics, Such as Straws, Disposable Cutlery

    European Commission Proposes Ban on Single-Use Plastic Items

Bloomberg

CVC Nears Deal to Acquire Logistics Firm Scan Global

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A WORKER IN A WAREHOUSE, SUPERIMPOSED WITH GRAPHICS SHOWING SUPPLY NETWORK

    Enabling Intelligent Visibility With Supply Chain Analytics

    Data Management (Big Data/IoT/Blockchain)
  • A HAND TURNS A LARGE, LIGHTED DIAL WITH THE WORD RISK ON IT iStock-NicoElNino-1364371014.jpg

    Measuring KPIs and KRIs for Comprehensive Supplier Performance Management

    Technology
  • GSCMS-Promo.png

    Watch: Introducing the Global Supply Chain Marketing Summit

    Education & Professional Development
  • A COMPLEX SERIES OF ROADWAYS AND RAMPS, SEEN FROM HIGH ABOVE, IS PARTLY SHROUDED BY CLOUD

    Supply Chain Visibility Isn’t Just a Catchphrase; It’s an Imperative

    Logistics
  • A MAN IN A SUIT SITS LEANING OVER THE BACK OF A CHAIR IN A WOOD-PANELLED ROOM FULL OF LARGE PHOTOS OF OTHER MEN IN SUITS

    UPS Faces Rising Labor Costs, Strike Risk in Upcoming Union Fight

    Last Mile Delivery

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing