Monday, September 14, 2009

Indonesia CPO obstructed by UE rules

Exports of Indonesia crude palm oil (CPO) Indonesia to countries of the European Union threatened to halt a few years ahead. This is the impact of EU rules on the use of renewable energy from renewable sources and environmental issues surrounding palm oil. Therefore, according to the Secretary General of the Combined Enterprise Indonesian Palm Oil (Gapki) Joko Supriyono, Sunday (13 / 9) in Jakarta, Indonesia began to glance at the new market of CPO in Asia, Eastern Europe and the Middle East. Nevertheless, the European Union can not leave because of the potential market including CPO Indonesia.

From the data, the total volume of Indonesian CPO exports in 2008 reached 7,904,179 tons. Of that amount, as much as 968,205 tons of which are exported to the European Union via the port in the Netherlands. Some other export destination countries include India, China, and Singapore. European markets is the export destination for the second largest of Indonesia CPO, after India.

To be able to sell palm oil to the European Union and incentives, according to Chairman of Indonesian Palm Oil Commission Rosediana Suharto, the exporter must meet the criteria of the EU directive on the use of renewable energy. If do not meet the criteria in the directive, there is no incentive and no EU country would want to buy that commodity. European Parliament approved the directive on April 23, 2009. Renewable energy target by 2020 is 20 per cent of the countries in the European Union, 20 percent of energy efficiency improvements, 20 percent use of renewable energy, 10 percent use of renewable energy in the transportation sector.

One of the alternative way to anticipate the application of the rule is to expand export markets to other countries, like China, Pakistan, Bangladesh, and countries in Eastern Europe. "Surely the new market expansion must have the support of the government. Business actors would be difficult to walk alone, "he added.