Former Malaysian deputy prime minister Datuk Musa Hitam has said Indonesia and Malaysia can fight back against the European Unions that is carrying out negative campaign against palm oil products – the major commodity of the two countries.
He said in Jakarta on Tuesday through various researches, both countries could show the world about EU’s false accusation of environmentally unfriendly management of palm oil products.
He gave an example that Indonesia currently could not tolerate burning practice for land clearance to open oil palm plantation and it required businesses to have the environment impact analysis (Amdal) before opening plantation.
Hitam said the negative campaign against palm oil products occurred after the vegetable oil produced in Europe could not compete against palm oil that started to enter their market.
“When palm oil successfully takes over the market due to more efficient production, it is considered as a big threat to the local vegetable oil,” Hitam said as reported by kompas.com after attending the Minamas Scholarship Awards 2018.
In January, the European Parliament approved a bill, which, among other things, would limit the use of palm oil for transportation fuel starting from 2021. The bill contains a plan to increase renewable energy use for at least 35 percent of overall energy use, but it also limits the use of biofuels.
IN late January, WTO also ruled in favor of challenges made by Indonesia against anti-dumping duties imposed on its biodiesel exports to the European Union.