Jakarta, CNBC Indonesia – The challenges for Indonesian palm oil commodities on the world market are increasing. Every policy of the export destination country is of concern to the government.
This is reflected in the meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and Richard Henry Ronald Benyon (Lord Benyon), British Minister of State for Climate, Environment and Energy in London, Tuesday (30/4/2024).
According to Airlangga, Indonesia is paying attention to the proposed British Law on Due Diligence for Forest Risk Commodities, under the British Environmental Law, which will have an impact on trade in Indonesia's superior products such as palm oil.
“Due Diligence Regulations must not create trade distortions or be discriminatory in terms of product coverage and national treatment,” said Airlangga, quoted from an official statement.
He emphasized that developing countries have the right to build a sustainable multilateral trading system. Therefore, the UK Government needs to adhere to the principles of transparency, non-discrimination and consistency with multilateral trade rules and regulations.
During the meeting, Airlangga explained the progress achieved by Indonesia in controlling greenhouse gas emissions through various steps such as the B40 program, planting mangroves, and accelerating the energy transition.
Indonesia has also submitted an enhanced National Determined Contribution (NDC) to the UNFCCC Secretariat in September 2022 with an increased emission reduction target from 29% in the First NDC and to 31.89% unconditionally (without international assistance) in the updated NDC. Meanwhile, conditional conditions (with international assistance) were increased from 41% in the first NDC to 43.20%.
Meanwhile, Lord Benyon responded that the British Government would take a partnership approach in implementing due diligence rules for sustainable products by taking into account the standards and certifications that already apply in partner countries, such as the Indonesian Sustainable Palm Oil system (ISPO) and the Roundtable Sustainable Palm Oil (RSPO). .
He also stated that the British Government is concerned about the lives of small farmers who work in the oil palm plantation sector.
He also emphasized that the UK applies different rules to the European Union and wants to build a sustainable product supply chain with Indonesia that does not pose a risk to forest sustainability.
Concluding the meeting, the two officials agreed to continue the FACT (Forest, Agriculture and Commodity Trade) dialogue as a global forum to informally discuss between the Government and other stakeholders, from producing and consuming countries, who are involved in trading commodities related to forest deforestation tropical.
[Gambas:Video CNBC]
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