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JAKARTA. President Susilo Bambang Yudhoyono seems cannot hide his peevish attitude toward United States for rejecting crude palm oil (CPO) and its derivatives from Indonesia. President accused US and other countries that reject CPO Indonesia unfair in the trade market, he said, in front of 128 foreign envoys, at the Foreign Ministry office, Wednesday (15/2).
“I heard an issue that there is a boycott and resist and also prohibition for palm-oil plantation. Honestly, if it truly happened I think it is unfair,” President said.
According to President, to prohibit a country to have palm-oil plantation which have economy value and welfare is a bad option. “We are sentenced not to make palm-oil plantation as a livelihood. I think it is injustice,” he said.
The beginning case that make Indonesia inflame is the US decision since last 28 January, formally rejected the products of palm-oil and its derivatives from Indonesia. The reason is because the palm-oil products from Indonesia are damaging environment. Indonesia is given deadline by US until 27 February 2012 to give reaction to it.
About the environment problem, President affirmed the commitment of government to control and supervise palm-oil plantation more effectively. President explicitly ensured that the processing of palm-oil plantation in Indonesia still consider the environment aspect.
Actually, the rejection to CPO and its derivatives from Indonesia have been occurred since the end of 2009. At that time, the giant consumer goods international from United Kingdom-Netherland, Unilever, have been decided to stop purchasing palm-oil from PT Sinar Mas Agro Resources and Technology (SMART).
According to the finding of international NGO, Green Peace, the reason is because SMART, a subsidiary of the group Sinar Mas, is accused to chop natural forest massively and to harm peat land in opening palm-oil plantation.
Sinar Mas inflamed of the Unilever boycott. Eka Tjipta Widjaja, a tycoon and the owner of Sinar Mas, denied that they have been spoiled the forest and he invites Green Peace to clarify their findings. “Only few of Green Peace’s reports are accounted for facts and scientifically. Many others are lying,” Daud Dharsono, chief of SMART, said at that moment (Tabloid Kontan, Edisi 21-29 Desember 2009).
Now, the damaging of environment issue is also used by United States to reject CPO and its derivatives from Indonesia. However, the boycott is less evidence.
The chief of Agro-Industry of Trade Ministry, Benny Wahyudi, valued that the reason actually aims to protect vegetable-oil industry in America. He affirmed that the environment issue such as deforestation and environment damaging is no basis.
He said that CPO production in Indonesia has already compatible to environment rules. “The reason is imaginative and untrue, it is made to protect industries in America,” Benny said.
According to Benny, America it is only to protect the vegetable-oil industry which is made from corn and soybean as raw materials. In fact, the vegetable-oil commodity is less competitive with CPO and its derivatives.
Benny added, actually, CPO export to America is not large. However, the attitude of United Stated can be made as referral by other countries. So, if other countries follow the US attitude, it will damage Indonesia as the biggest producer CPO in the world.
The Agriculture Deputy Minister, Rusman Heriawan, expects the other export countries such as India, China, and Pakistan is not influenced by the US policy. “We have to understand because it has impacts,” he said.
Based on Rusman, Indonesia has run out the Indonesian Sustainable Palm Oil System (ISPO) policy. The ISPO control the environment of palm-oil. He said that ISPO is not only a figment, but also control the standard of land clearing, planting and producing CPO which are not damage environment.
The chief of Research and Environment of the Indonesian Palm Oil Producers Association (GAPKI), Daud Harsono, said that Indonesia still have time to give any opinion and protest. He added that all of businessman who have link to CPO have to unite to give opinion and protest to US’s government.
The palm-oil producers are heard by Indonesia’s government. Coordinating Economic Minister, Hatta Rajasa, said that the government will submit protest to US’s government soon. The formal attitude will apply through Trade Ministry and Agriculture Ministry.
“I think it have to be explained and protested. We will utter this case in World Trade Organization (WTO) and US Government will give explanation,” he insisted.
The reason why the Indonesian government bring it to WTO because United Stated is valued to do trading protection with making technical barriers policy. Hatta said he will assertive to fight the US attitude with scientific explanation.
If the Biodiesel, one of CPO products, is damaging environment, where does the statement come from? It is clear that all biodiesel is not containing carbon emission,” Hatta said.
According to Daud, Indonesia have capable to give opinion and scientific data in protesting the US statement. If the data that will be delivered is scientific and convince, the experts in America will able to understand.
So, let us wait where this trade ‘battle’ will go in the next days. The government and CPO producers have capable to prove that the boycott that US did is a mistake. CPO Indonesia is warm environment have to be proved scientifically.
If Indonesia able to prove it, United States have to rectify their decision and allow CPO from Indonesia come. So, there is no the same boycott from other countries.
Sam Cahyadi, Yudho Winarto, Hans Henricus, Sofyan Nur Hidayat
