PALMOILMAGAZINE, JAKARTA – Amid evolving global trade dynamics, the European Union (EU) has reaffirmed its commitment to maintaining stable trade relations with Indonesia. This assurance was conveyed by Denis Chaibi, the EU Ambassador to Indonesia and Brunei Darussalam, during a meeting with key stakeholders in the palm oil sector.
Chaibi emphasized that the EU values the perspectives of its trade partners. He noted that the one-year delay in implementing the European Union Deforestation Regulation (EUDR) provides Indonesia with additional time to adapt. However, he urged stakeholders to consider the broader global trade landscape.
“Indonesia enjoys a trade surplus with India, the United States, the Philippines, and the EU. With India, most exports consist of coal, with a smaller portion being palm oil. The U.S. primarily imports textile products, while trade with the EU is significantly more diversified,” he stated at the Business Roundtable Forum organized by the Global Alliance on Sustainable Planet (GASP) in collaboration with Indonesia Palm Oil Strategic Studies (IPOSS), attended by Palmoilmagazine.com on Tuesday (February 18, 2025).
Also Read: Indonesia and Malaysia Collaborate with FAO to Develop Global Palm Oil Sustainability Standards
Chaibi highlighted that last year, Indonesia recorded an €8 billion trade surplus with the EU, down from €11 billion the previous year. He stressed that the EU has not imposed additional tariffs or arbitrary trade barriers on Indonesian products, including palm oil.
Regarding palm oil exports, he explained that 50% of Indonesia’s production is used domestically, while the remainder is exported. Of these exports, only 5% is shipped to the EU, with 3–4% sourced from large plantations that are already certified as sustainable. This, he noted, demonstrates that the majority of palm oil entering Europe already meets sustainability standards.
“We need to see the bigger picture. These regulations are driven by consumer preferences in Europe. Other countries are also moving in the same direction—China is developing its own certification system, and the U.S. is adopting similar measures,” he stated.
Also Read: Indonesia Economic Summit (IES) 2025: Sustainable Growth Depends on Three Key Factors
To facilitate smoother trade, the EU has allocated €14 million for various certification projects in Indonesia, including four pilot projects for smallholder farmers. A European company in Indonesia has even certified 30,000 small farmers for non-palm oil products through a €1 million investment.
Chaibi also emphasized that the EU has taken concrete steps to ease the transition, including:
- Delaying EUDR implementation for one year
- Forming a Joint Task Force with Malaysia and Indonesia
- Engaging in direct consultations with key Indonesian officials
Looking ahead, the EU remains committed to ensuring that palm oil trade remains stable and could even expand further.
“We want to ensure that trade flows remain uninterrupted. Palm oil is important for our competitiveness, and we are eager to collaborate with Indonesia to maintain this balance,” he concluded. (P2)
