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Friday, February 24, 2012

US embargo on Indonesia's CPO is discriminative

Trade Ministry viewed an embargo on crude palm oil procurement from Indonesia applied by US is inaccurate and discriminative.

Director General of International Trade at Trade Ministry Deddy Saleh said the embargo can be categorized as a discriminative measure because cooking oil made from soybean, sunflower oil, and corn oil are considered to contain greater carbon emission.

“Palm has less environmental impact than soybean. Then, land productivity of palm oil could be 4 tons per hectare, while that of soybean is only at 0.4 tons per hectare,” he revealed in a working visit to Mamuju, West Sulawesi, yesterday.

He affirmed US just considered a number of debatable assumptions, as estimation for undeveloped land of palm oil plantation in 2020 based on scientific calculation.

In addition, US also assessed imported crude palm oil from Indonesia used as raw material of biofuel isn’t environmentally friendly.

Even, US Government had issued notification of Enviromental Protection Agency (EPA) on renewable fuel standards stating that bio-fuel of Indonesia does not yet qualify the renewable standards.

EPA regulates that the reduction limit of greenhouse-gas effect for biodiesel and renewable diesel made from crude palm oil is 20% at minimum.

In the meantime, the analysis result of EPA showed the palm oil export from Indonesia to US is still below the standard at 17% for biodiesel and 11% for renewable diesel.

Therefore, Director General for Processing and Marketing of Agricultural Crop at Agriculture Ministry Zaenal Bachrudin said stakeholders of crude palm oil sector in Indonesia and representative officers of Malaysia will hold a final meeting on the notification of EPA.

Planting areal

Forestry Minister Zulkifli Hasan informed Indonesia has the world’s largest tropic-forest area up to 130.8 million hectares, so it could determine the geopolitical position at global level.

The forest area has three functions, namely for conservation forest covering 26.8 million hectare area, protection forest covering 28.86 million ha, and production forest covering 57 million ha.

The forestry development beyond forestry sector such as for palm plantation has also been regulated in Law No.14/1999 on Forestry.

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