As the palm oil war between Indonesia and Europe escalates, Indonesia has threatened to ban imports of certain European goods. The world’s largest palm oil producer has hinted that the import ban could include jets manufactured by European companies, especially when Indonesia is expected to acquire about 2,500 aircraft in the next two decades.
EU has proposed to impose stricter limits on palm oil use in green fuels. Indonesia argues that the ban could impact the livelihoods of a whopping 20 million people. The proposed ban on palm oil has already impacted benchmark palm prices, which have fallen for five quarters in a row.
In addition to the ban on EU goods, Indonesia also plans to lodge a formal protest with the World Trade Organization if the European Union ratifies the proposal.
The EU is aiming for a circular economy and is leading the battle against global warming. It has set many targets to reduce greenhouse gases and the ban on palm oil imports is one of the measures.
More about palm oil markets in Indonesia will be discussed at CMT’s 11th Asia Sustainable Oil Palm Summit in Jakarta on 12-13 September, 2019.