REPUBLIKA.CO.ID, JAKARTA -- Vice President Jusuf Kalla has warned the European Union not to impose a discriminatory policy on Indonesian crude palm oil and its derivative products by banning the product for biofuel in the region. He reminded that Indonesia also could apply the same policy to the European Union. 

"Do not discriminate against, because we can also take the same policy. We warn Europe that we are one of their biggest buyers of Airbus for instance by Garuda, Lion Air and others," Kalla said here on Wednesday.

He reiterated that Indonesia could stop imports from European countries if the ban on crude palm oil as motor fuel would be continued.

The government, therefore, has continued negotiations to maintain smooth cooperation in trade with European Union countries, to increase economic growth.

"We have a meeting on free trade agreement between Indonesia and the European Union," he continued.

Also read: Indonesia continues dialog with EU parliament over palm oil

Previously, Trade Minister Enggartiasto Lukita said he would establish a negotiation team on trade, especially on CPO import policy in Europe.

Indonesia would ask Malaysia as another major producer of palm oil, to join the negotiation.

"I have reported to the Vice president that Europe has insisted (on the policy). Indonesia must join with Malaysia for this, as two world's largest producers," he said.

Jusuf Kalla has instructed Indonesian Ambassador in Kuala Lumpur Rusdi Kirana to discuss the issue with the Malaysian government and ask them to join in the negotiation with the EU.

Rusdi Kirana as the co-founder of Indonesian Lion Air Group is expected to play his role to increase the country's bargaining position, regarding the company's import of European-made aircraft.

The European Parliament has planned to ban the use of crude palm oil as biofuel from 2021, as it has been considered as unfriendly to the environment.

The decision has upset palm oil producers, including Indonesia and Malaysia which together produce nearly 90 percent of the world's palm oil.

Palm oil is widely used as cooking oil and in making products ranging from ice cream to instant noodles and soaps to lipsticks. The commodity can be blended with fossil fuels such as diesel to produce biofuel to power up motor engines.

Oil palm plantations in Indonesia covered 11.7 million hectares at the end of 2017. Indonesia last year exported a total of 28 million tons of crude palm oil, valued at US$23 billion.

Some 40 percent of Indonesian palm oil exports to Europe are converted into biofuels.

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