RI Producers Welcome New EC Policy on Palm Oil

24/06/2010 (Antara News), Jakarta - Indonesian palm oil producers have welcomed the European Commission (EC)'s recent decision to remove palm oil and its derivatives from its list of dangerous chemicals.

The deletion happened as part of a revision of the EC`s regulation on Registration, Evaluation, Authorization and Restriction of Chemicals (REACH).

"This is good news. It means tests on content and certification declaring absence of dangerous substances will no longer be needed," head of foreign affairs of the Association of Indonesian Palm oil Producers (GAPKI), Purboyo Guritno, said when contacted to comment on the EC`s decision here on Wednesday.

The REACH revision would also free palm oil exporters fom the need to make adjustments and preparations to meet palm oil export standards set by the European Commission.

He said the deletion of palm oil from the dangerous substances list was correct as palmoil could be used for a variety of purposes.

"Palmoil is not only used as food products but also non-food products such as oleochemicals for making soaps, as fatty acid, fatty alcohol and glycerin," he said.

He said the EC`s decision on palmoil would be very positive for Indonesia`s palmoil export activities.

On a separate occasion, Trade Minister Mari Elka Pangestu hailed the EC`s decision as good news for Indonesian palm-oil exporters.

"It is more about chemical content. So, in view of the REACH regulation chemical contents in palm-oil is declared safe," she said after launching an "Indonesia Creative" website.

Since the issuance of REACH regulation on December 18, 2006, the Indonesian government had kept striving for the protection of the country`s interest in global trading by lobbying the European Commission as the implementation of the regulation as of June 1 2008 had caused worries among exporters of products processed using chemicals such as batik cloth, furniture, handicraft, toys and footwear.

The Indonesian government complained about the REACH regulation to the European Commission because the European Union had not firmly categorized palm oil as dangerous chemicals-free to cause certain obstacles for Indonesian exports.

The country`s palm oil exports to the EU countries meanwhile are quite high. According the the trade ministry data they reached US$1.07 billion in 2007, US2.1 billion in 2008 and US$2.26 billion in 2009.

The country`s palm oil exports to Europe from January to April 2010 meanwhile reached US$930,000, around 20 percent of the country`s total palm exports worth US$4.65 million in the period.

The European Commission has followed up Indonesia`s request and tried to review other products exempted from registration and later amended some parts of the regulation.

On June 7, 2010, the new European Union trade commissioner, Karel de Gucht, gave written clarification upon the request of the country`s ministry of trade that palm oil derivatives such as fatty acid and glycerine are exempted products as stated in the Annex V of the REACH regulation.