Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Indonesia presidential front-runner Prabowo criticises EU on deforestation

Published 13/11/2023, 12:45
Updated 13/11/2023, 13:25
© Reuters. FILE PHOTO: Indonesia's defence minister and presidential candidate, Prabowo Subianto greets the supporters after registering himself for next year's presidential election, at the election commission headquarters in Jakarta, Indonesia, October 25, 2023. R

JAKARTA (Reuters) -Indonesia's presidential front-runner Prabowo Subianto on Monday criticised the European Union over its ban on palm oil imports and said Europeans during colonial times were also guilty of deforestation.

The EU in April passed a law which would ban imports of commodities linked to forest destruction, including palm oil of which Indonesia is the world's biggest producer.

Prabowo, who is leading opinion polls ahead of a presidential election next February, said Indonesia maintains "good" relations with Europe "although we have problems sometimes with the European Union".

"We open our market to you," he said, citing Mercedes Benz and Volkswagen (ETR:VOWG_p) vehicles as examples. "But you won't allow us to sell palm oil, and now we have problems trying to sell coffee, tea, cocoa," he told a forum organised by the Centre for Strategic and International Studies in Jakarta.

The European Union said in an email that it could not comment on statements by Indonesia's political candidates.

"This Regulation is for everyone, in and outside Europe. It applies to commodities, not countries, and is neither punitive nor protectionist, but creates a level playing field," it said, adding it engages partners "so we can continue trade, but without deforestation."

Until the ban, the EU was the third-largest buyer of Indonesian palm oil.

Palm oil production is often blamed by environmentalists for deforestation but Prabowo said that during colonial rule, Europeans forced Indonesians to plant tea, coffee, rubber and cocoa and "you destroyed our forests before."

Indonesia was a Dutch colony when it was known as the Dutch East Indies and an important source of wealth, thanks to the trade in spices.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Prabowo said that if he wins the presidency: "I don't want protectionism, I want an equal playing field."

Indonesia is a major producer of coffee, cocoa, rubber and timber products and about 6 billion euros ($6.41 billion) of its annual exports will be affected by the EU's deforestation law, its chief economic minister has said.

The EU, Indonesia and neighbouring Malaysia, the world's second-largest palm oil producer, have formed a task force to discuss the law.

($1 = 0.9360 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.