Hadapi UU Anti-Deforestasi Eropa, Sawit RI Harus Gimana?

Summary

The transcript discusses the European Union's deforestation regulation, which affects Indonesia's palm oil exports. While the law signals a growing global concern for deforestation, there are still uncertainties about its implementation, such as defining deforestation and determining its timeline. Indonesia has already made efforts to combat deforestation since 2011, making the law's impact on the country less severe. Despite potential trade challenges, Indonesia remains committed to sustainable palm oil production and seeks a balanced, collaborative approach with Europe to address deforestation and climate change concerns.

Takeaways

• 😀 The deforestation law passed in December 2022 will come into full effect in 2.5 years, allowing time for adjustments.
• 🌍 Brazil, Argentina, Paraguay, and Indonesia have protested the law, which is still under dispute at the WTO.
• 🌱 The law focuses on deforestation tied to the production of palm oil, cocoa, and timber, but there are many uncertainties.
• ❓ One key question is how Europe defines deforestation, such as whether it includes land cleared for palm oil plantations or only forests being cleared for agriculture.
• 📅 The law states that deforestation occurring before December 31, 2020, is exempt, but there are debates about how this is applied.
• 🛢️ Indonesia's palm oil industry is concerned about how mixed sources of palm oil (from deforestation and non-deforestation areas) will be distinguished and treated under the law.
• 🇮🇩 Indonesia has been addressing deforestation since 2011, implementing a moratorium on opening new plantations that involve forest clearing.
• 💼 The law signals that Europe is becoming more protective, but Indonesia believes that business trade will continue, especially with its palm oil exports.
• 🌾 Despite concerns, palm oil remains a vital ingredient in many products in European supermarkets, making it challenging for Europe to entirely reject Indonesian palm oil.
• 🤝 Indonesia and Europe should engage in mutual dialogue to ensure sustainable palm oil production, with shared standards and practices to address deforestation effectively.

Q & A

When was the law passed and when is it expected to come into effect?

The law was passed on December 6, 2022, but it is expected to come into effect in about two to two and a half years, as there is still a period for adjustments.

Which countries have protested the law, and what is Indonesia's position on this?

Brazil, Argentina, and Paraguay have protested the law, and Indonesia has supported their protests.

What are the main issues surrounding the law that still need clarification?

The main issues include the definition of deforestation, whether it refers to cleared land for plantations or only to virgin forests, and the specific time frames for deforestation, such as whether it should include deforestation that occurred before December 31, 2020.

What is Indonesia's position on deforestation as it relates to the law?

Indonesia has already been tackling deforestation since 2011, with a moratorium on opening plantations that involve clearing forests. Therefore, the country feels it has largely addressed the deforestation issue.

How does the law impact Indonesia's palm oil industry?

Despite the law signaling Europe’s increasing protectionism, Indonesia believes that it can still maintain trade relations with Europe, particularly in the palm oil industry, as Europe heavily depends on palm oil for various products.

What are the challenges related to distinguishing palm oil from deforested and non-deforested land?

It is difficult to distinguish palm oil products that come from deforested land versus those that do not, especially once the palm oil is processed into products like cooking oil.

Why is it difficult for Europe to reject Indonesian palm oil despite the law?

It is difficult for Europe to reject Indonesian palm oil because it is widely used in many consumer products, including food, cosmetics, and even baby diapers, with no direct substitutes in sight. Additionally, Europe still needs palm oil for bioenergy, especially given the energy challenges they face due to the Ukraine situation.

How does Europe view the deforestation law in relation to Indonesia's role in global deforestation?

Europe's deforestation law signals a concern for deforestation, but Indonesia and Europe both agree that it is important to tackle deforestation in a wise and balanced way, with both parties aiming to preserve forests.

How significant is the export of palm oil from Indonesia to Europe?

Palm oil exports from Indonesia to Europe account for about 10-11% of Indonesia's total exports, meaning that even if Europe is very strict, Indonesia still has other markets for its palm oil.

What is Indonesia's goal in terms of palm oil sustainability, and how does it want to engage with Europe on this issue?

Indonesia aims to provide sustainable palm oil and wants to discuss the indicators and parameters for sustainability with Europe. The main issue with the law is that it is unilateral, and Indonesia believes that both sides should discuss and agree on the criteria for sustainability.