RI'S CPO EXPORTS TO EU NOT HAMPERED

Jakarta, July 25 (ANTARA) - European Union Ambassador to Indonesia and Brunei Darussalam Julian Wilson said the Renewable Energy Directive (RED) issued by the European Union was not intended to hamper Indonesia's crude palm oil (CPO) exports.

"The RED is issued to overcome the climate change and not to disadvantage industry," Wilson said here on Friday. He made the remarks after a discussion with government representatives, businessmen and non-governmental organizations on CPO and environmental issues.

He denied that there was a plan to boycott Indonesia's CPO export with the imposition of the RED ruling.

Based on the EU's data, Indonesia's CPO exports to the European Union grew 27 percent per annum in the 2005 - 2008 period. During 2008, Indonesia's CPO exports to the European Union reached about three million tons with a value of about 1.25 billion euro.

The RED was proposed in January 2008 and was approved by member countries in December 2008. The scheme requires each EU member country to adopt an action plan on the use of renewable energy in order to reduce the impact of climate change as a result of increase in carbon emission.

The biofuel that was to be used must meet several conditions such as the use of raw materials which were environment friendly based on the European standards.

Wilson explained that Indonesia's CPO exports to European Union would continue as usual with a normal rate of import duties even though they did not meet the standards.

"The CPO exports to European Union will proceed as usual but if the rule is abode-by, the exports will get additional incentives," he said.

In the meantime, Thibaut Portevin, European Commission's program manager for natural resources and environment, said the incentives would be different in each of Indonesia's export destination countries.

"The incentives could be in the form of tax facilities or the imposition of a premium price, but this is different in each of the European countries," Portevin said.