Trade restrictions, such as the European Union Law on Deforestation (EUDR), are making the European Union's position on Indonesian palm oil worse. The regulation targets palm oil and its derivatives, including charcoal, coffee, soybeans, cocoa, beef, and wood. Exporters must submit due diligence and verification documents to ensure their products do not originate from deforested areas. However, the volume of exports of crude palm oil (CPO) and its derivative products to the EU decreased from 5.5 million tons in 2021 to 3.75 million tons in 2022. The Ministry of Trade's Director for Export of Agricultural and Forestry Products, Farid Amir, believes that long-term and sustainable efforts are needed to diversify the export market for CPO and its derivatives. The average export of Indonesian palm products to the EU is 3.75 tons per year, which is not easy to transfer in a short time.The domestic market can also be an initial capital source to absorb domestic palm products, such as by increasing the mixture of diesel fuel with vegetable oil by 35% to B40. However, further analysis is needed to determine its benefits. The EU's current economic conditions have forced them to increase internal consumption, as the availability of vegetable oils from sunflower and soybean is dominant in the EU. The implementation of EUDR is considered a non-tariff trade barrier, requiring business actors to increase the length of the mechanism, time, and cost. The EUDR also introduces new burdens, such as monitoring satellite imagery to check for indications of palm oil farmers' land originating from deforestation. EUDR tends to favor easy-to-adapt companies in the EU, but this can weigh on society as it loses options and prices increase.Link di fonte: https://www.kompas.id/baca/ekonomi/2023/06/14/pencarian-alternatif-ekspor-produk-sawit-ke-uni-eropa-butuh-waktu-lama (ICE GIACARTA)

Fonte notizia: Kompas - 14 June 2023