Indonesia Hopes French Will Scrap Palm Oil Taxes

President Jokowi has a bilateral talk with French President FrançoisHollandeinJepang (27/5).

The Indonesian Government hopes the French Government can give its support so that the deliberation of the country’s plan to impose taxes on palm oil products will be scrappedby the French Senate and Indonesia can continue exportingits palm oil to France.

The statement was delivered by President Joko ‘Jokowi’ on Friday (27/5) at Shima Kanko Hotel in Shima, Japan, during a bilateral talk with President of the French Republic François Hollande.

Indonesia, the world’s largest producer of palm oil, has strongly protested France’s plan to issue a biodiversity law that will triple import taxes on palm oil products, which are one of the country’s main export commodities.

The French Senate adopted on 21 January 2016 a proposed amendment to a biodiversity bill that will allow the imposition of progressive taxes on palm oil, palm kernel, and food containing such oils.

During the talk, both leaders also discussed Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA).

President Jokowi welcomes the completion of the initial phase – known as scoping papers – of the comprehensive economic partnership agreement (CEPA) between Indonesia and the European Union (EU). The scoping paper was discontinued for several years.

“I hope the formal negotiation of the comprehensive economic partnership agreement (CEPA) between Indonesia – European Union can begin this year. The negotiation is aimed at making Indonesia’s economy more open and more competitive,” President Jokowi said.

Meanwhile, regarding Indonesia’s timber products to the EU, President Jokowi hopes the first ever Forest Law Enforcement Governance and Trade (FLEGT) licensing scheme can be implemented soon.

By producing FLEGT-licensed timber, considered by the EU to have been harvested legally, Indonesian timber products will gain free access into the EU market.

In the meantime, President Hollande considers the ‘win-win’ approaches are the best approach to address those issues.

On that occasion, both leaders also agreed to promote cooperation to fight against terrorism.

“We highly appreciate President Jokowi’s approach that prioritizes comprehensive approaches, including soft power and hard power approaches,” President Hollande said.

Joining the President in the meeting were Minister of Foreign Affairs RetnoMarsudi, Minister of State Secretary Pratikno, and Minister of National Development Planning/Head of the National Development Planning Aggency (Bappenas).(TKP/DAN/SKM/EN) (EP/YM/Naster)