MARKET DEVELOPMENT
The Thinker: Quo Vadis APEC?
The Thinker: Quo Vadis APEC?
01/10/2013 (Jakarta Globe) - During the last Asia-Pacific Economic Cooperation forum in Vladivostok, Russia, in 2012, Indonesia lobbied hard to get its crude palm oil (CPO) included in the APEC Environmental Goods List — to get import duty exemption of up to 5 percent starting 2015.
Alas, that lobby failed. The advanced APEC countries said “no.” They made up reasons, saying that Indonesian CPO is environmentally unfriendly while actually they were merely protecting their own soybean, corn and sunflower seeds-based products. Even though Indonesian CPO is sustainable, cheaper and superior, it was the dictate of the more powerful nations that counted.
Now, it is a challenge for Indonesia as host of APEC in Bali to stand up against the injustices of the more powerful nations, which are supposed to be partners in the prestigious 21-nations economic cooperation forum.
Western countries are still restricting the import of products containing palm oil even though Indonesia’s palm oil products have received the Indonesian Sustainable Palm Oil certification in 2011.
Meanwhile, Europe has included CPO in the list of products that don’t meet renewable-energy standards and regards CPO as harmful to human health.
An extensive lobby at APEC against this Western campaign is important as 76 percent of Indonesia’s exports go to Asia-Pacific countries. APEC is supposed to be a friendly forum to encourage cooperation in investment and trade among nations. And Indonesia wants fairer trade practices especially from the powerful economies.
But Trade Minister Gita Wirjawan, a presidential hopeful and APEC chair, has kept silent over the issue while an angry coordinating minister for the economy, Hatta Rajasa, urged Indonesian officials to “fight this European black campaign and fight this trade war. ”
Deputy Trade Minister Bayu Krishnamurti has called for a more nationalistic stance. He said that the campaign has caused great losses to the national oil palm industry and that Indonesia can sue nations restricting Indonesian CPO exports.
CPO production in Indonesia is a strategic industry as it supports economic development based on the principles of pro-growth, pro-poor, pro-job and pro-environment. The industry involves not only the large-scale companies but millions of farmers. CPO provides jobs, alleviates poverty, spurs regional development and increases export revenues. Besides that, CPO production has been a traditional industry for more than 100 years.
Indonesia is the largest producer of certified sustainable CPO at around 3,5 million tons and the production keeps increasing.
All this reflects Indonesia’s strong commitment to this product. But again, a strong lobby is needed. Do we have capable negotiators who won’t bow to foreign dictates?
Indonesia and Malaysia must join hands in fighting this injustice and discrimination imposed by the Western nations. Otherwise the upcoming APEC will have no real impact on Indonesia.
The APEC governments represent 2,3 billion of the world’s 6 billion people. Since its inception in 1989, APEC’s mission was to boost free trade and the free flow of investment.
When Indonesia hosted APEC in Bogor in 1994, delegates declared the intention to make APEC a free trade and free investment zone by 2010 for the advanced countries and by 2020 for the less developed economies. But ever since, the importance of the Bogor ideals seemed to diminish. Earlier, each member country had the right to bring up an issue for deliberation. But then the more powerful APEC nations began to dictate their interests — like in the case of Indonesian CPO.
In Bali it will depend on initiatives of the APEC host to speak out in the interests of the Indonesian people and to make sure APEC will have a real impact on the economy. Failure to do so and without a significant other contribution, APEC will only look like a vacation gathering of the world’s leaders on the idyllic island of Bali.
Alas, that lobby failed. The advanced APEC countries said “no.” They made up reasons, saying that Indonesian CPO is environmentally unfriendly while actually they were merely protecting their own soybean, corn and sunflower seeds-based products. Even though Indonesian CPO is sustainable, cheaper and superior, it was the dictate of the more powerful nations that counted.
Now, it is a challenge for Indonesia as host of APEC in Bali to stand up against the injustices of the more powerful nations, which are supposed to be partners in the prestigious 21-nations economic cooperation forum.
Western countries are still restricting the import of products containing palm oil even though Indonesia’s palm oil products have received the Indonesian Sustainable Palm Oil certification in 2011.
Meanwhile, Europe has included CPO in the list of products that don’t meet renewable-energy standards and regards CPO as harmful to human health.
An extensive lobby at APEC against this Western campaign is important as 76 percent of Indonesia’s exports go to Asia-Pacific countries. APEC is supposed to be a friendly forum to encourage cooperation in investment and trade among nations. And Indonesia wants fairer trade practices especially from the powerful economies.
But Trade Minister Gita Wirjawan, a presidential hopeful and APEC chair, has kept silent over the issue while an angry coordinating minister for the economy, Hatta Rajasa, urged Indonesian officials to “fight this European black campaign and fight this trade war. ”
Deputy Trade Minister Bayu Krishnamurti has called for a more nationalistic stance. He said that the campaign has caused great losses to the national oil palm industry and that Indonesia can sue nations restricting Indonesian CPO exports.
CPO production in Indonesia is a strategic industry as it supports economic development based on the principles of pro-growth, pro-poor, pro-job and pro-environment. The industry involves not only the large-scale companies but millions of farmers. CPO provides jobs, alleviates poverty, spurs regional development and increases export revenues. Besides that, CPO production has been a traditional industry for more than 100 years.
Indonesia is the largest producer of certified sustainable CPO at around 3,5 million tons and the production keeps increasing.
All this reflects Indonesia’s strong commitment to this product. But again, a strong lobby is needed. Do we have capable negotiators who won’t bow to foreign dictates?
Indonesia and Malaysia must join hands in fighting this injustice and discrimination imposed by the Western nations. Otherwise the upcoming APEC will have no real impact on Indonesia.
The APEC governments represent 2,3 billion of the world’s 6 billion people. Since its inception in 1989, APEC’s mission was to boost free trade and the free flow of investment.
When Indonesia hosted APEC in Bogor in 1994, delegates declared the intention to make APEC a free trade and free investment zone by 2010 for the advanced countries and by 2020 for the less developed economies. But ever since, the importance of the Bogor ideals seemed to diminish. Earlier, each member country had the right to bring up an issue for deliberation. But then the more powerful APEC nations began to dictate their interests — like in the case of Indonesian CPO.
In Bali it will depend on initiatives of the APEC host to speak out in the interests of the Indonesian people and to make sure APEC will have a real impact on the economy. Failure to do so and without a significant other contribution, APEC will only look like a vacation gathering of the world’s leaders on the idyllic island of Bali.