Why Indonesia is pushing back against EU rules | DW News

Summary

The transcript discusses tensions between the EU and Indonesia over environmental policies, particularly the EU's deforestation laws, which Indonesia's ambassador to Germany argues are harming small farmers and hindering trade. The ambassador calls for fair treatment and readiness from the EU to implement agreed treaties, while also highlighting Indonesia's openness to foreign investment in its nickel industry. The conversation touches on trade imperialism, Indonesia's economic strategies to avoid the resource curse, and a call for Germany to support Indonesia in finalizing a free trade agreement and fostering industrial collaboration.

Takeaways

• 😡 The EU's policy on deforestation is criticized as being poorly thought out and harmful to small holders rather than large corporations.
• 🌳 The EU's law to ban deforestation from supply chains is seen as hypocritical, especially considering the loss of mature forests in Europe itself.
• 📋 Indonesia is willing to abide by anti-deforestation laws but seeks fair treatment and non-discriminatory implementation from the EU.
• 🤝 The Indonesian ambassador to Germany emphasizes the readiness of Indonesia to engage in robust cooperation against deforestation.
• 💼 There is a call for the EU to work with Indonesia, rather than impose policies that may harm small farmers and local economies.
• 🌐 The ambassador highlights the importance of fair trade and the need for the EU to be ready for agreements like the UDR (Unilateral Deforestation Regulation).
• 🤔 The EU's stance on nickel production and trade with Indonesia is questioned, with the ambassador pointing out a perceived double standard.
• 🏭 Indonesia is inviting foreign investment to improve its smelting systems and meet the world's demand for nickel, despite trade challenges.
• 📉 The nickel industry in Indonesia faces challenges such as falling prices and the need for better environmental practices.
• 🌐 The ambassador suggests that the EU's approach to trade and investment in Indonesia is imperialistic and not inclusive.
• 📊 Indonesia's economy has been performing well, with a focus on managing resources wisely and developing sectors like the digital economy.

Q & A

What is the main concern of small holders regarding the EU's policy on deforestation?

Small holders are concerned that the EU's policy is not well thought out and is negatively impacting them, as they are being accused of contributing to deforestation despite not being directly involved.

How does the EU's law to ban deforestation affect trade partners like Indonesia?

The EU's law is frustrating trade partners abroad, such as Indonesia, which has valuable minerals for tech use and claims that the regulation is harming its small farmers.

What is the current situation with the free trade deal between the EU and Indonesia?

The two parties are currently thrashing out a free trade deal, with the issue of the EU's environmental principles and its impact on Indonesia's small farmers being a point of contention.

What is Indonesia's stance on the EU's requirements for anti-deforestation?

Indonesia is ready to abide by the anti-deforestation requirements but questions whether the EU is ready to implement them without discriminations, especially regarding vegetable oils like palm oil.

How does the ambassador of Indonesia to Germany view the EU's approach to environmental standards?

The ambassador believes the EU's approach is hypocritical, pointing out that Europe's mature forests are dying without the same level of protest as deforestation in the global South.

What is the issue with the EU's implementation of the UDR (User's Data Regulation)?

The ambassador suggests that the EU is not fully implementing what has already been agreed upon in legally binding treaties, and questions the EU's commitment to fair treatment.

How does the ambassador perceive the impact of the EU's policy on small holders in Indonesia?

The ambassador argues that the EU's policy is killing small holders who have nothing to do with deforestation, and that the policy is not well thought out.

What is Indonesia doing to address the challenges in the nickel industry?

Indonesia is working on improving its smelting system and inviting foreign investors to help meet the world's needs for nickel, which is crucial for battery manufacturing.

How does the ambassador view the EU's stance on Indonesia's ban on the exportation of nickel ore?

The ambassador believes the EU is being hypocritical by not allowing Indonesia to process its raw materials, similar to how Chile is treated under the FDA between Brussels and Chile.

What is the ambassador's message to the EU regarding their policy on deforestation and trade?

The ambassador's message is that the EU's policy is not well thought out and is harming small holders. He suggests that the EU should engage more robustly with Indonesia in the fight against deforestation.

How does Indonesia manage to avoid the resource curse and maintain a strong economy?

Indonesia focuses on a digital economy, services, e-commerce, fintech, and a strong domestic consumption driven by a young population, as well as prudent fiscal policies and controlled inflation.

What is the ambassador's request to Germany's ambassador, Olaf Scholz?

The ambassador asks for Germany's help in finishing the FDA with the US and encourages more German industries to invest in Indonesia, highlighting the country's readiness with 'red carpet' treatment.