Indonesia and Malaysia Line up against Brussels

(Biofuels International) Malaysia has thrown its weight behind Indonesia’s rebuke of the EU’s Deforestation Regulation.

Indonesia’s President Jokowi and Malaysian PM Anwar Ibrahim declared their position during the first meeting of the two leaders on January 9, stating that they “agreed to strengthen cooperation to boost markets and combat discrimination against palm oil”.

Last week, Malaysian Foreign Minister Zambry Abdul Kadir told reporters: “The EU deforestation policy is a step against good kinship. Jokowi’s speech has made it clear that [...] the policy is of concern to ASEAN. That the EU cannot dictate. This is an opportunity for Indonesia and Malaysia to join forces and be united in our voices. We stand with Jokowi on this matter.”

A new found cooperation between the two may be a significant blow for the EU in the region. Although the EU-ASEAN Summit produced few substantive results, EU officials had pinned their hopes on stronger bilateral relationships. READ MORE

Excerpt from Biofuels International: Indonesia’s President Jokowi has called on EU leaders to rescind the bloc’s controversial deforestation regulation (EUDR) at the recent G20 meeting in India.

The President made the call when meeting with Dutch Prime Minister Mark Rutte, and discussing the country’s climate ambitions, and a transition to renewable energy under the Just Energy Transition Partnership.

According to Indonesian English-language media, Jokowi said: “I hope that the Netherlands can support the development of low-carbon technology and the conversion of steam power plants to renewable energy as a follow-up to the JETP cooperation, and encourage the abolition of EUDR so it does not discriminate against Indonesia's main commodities.”

Jokowi also made the same request to Italian leaders, with the comments appearing on official government websites.

Foreign Minister Retno Marsudi, when elaborating on the high-level request, said that Indonesia also “request[s] that the benchmarking process be carried out transparently.”

There are concerns among Indonesia and other exporting nations that the process of classifying nations as high, standard or low risk for deforestation will effectively take place behind closed doors.

The President’s call comes at the same time that a group of exporting nations – including Indonesia – have released a letter to the EU Commission, Council and Parliament, requesting that the EU consider the impact of the regulation on developing countries. READ MORE

Excerpt from Biofuels International: Indonesia is taking the initiative to unite ASEAN member countries against what it perceives as broader discriminatory global sustainability policies, but particularly the European Union's Deforestation Regulation (EUDR), even with the regulation’s delay.

This development comes as ASEAN grapples with the potential economic impacts of such regulations on its key export commodities.

At the 24th ASEAN Economic Community Council (AECC) Ministerial Meeting held in Vientiane, Laos, on October 7, Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, made a case for ASEAN unity against the EUDR.

"I invite all ASEAN member countries to be united and pro-active in responding in a measurable manner to discriminatory world sustainability policies such as the EUDR, because they have a negative impact on the economy and the lives of many people," Airlangga said.

The EUDR, which was originally scheduled to take effect at the end of December 2024, has now been postponed until 2026.

This delay provides a crucial window for ASEAN countries to develop a cohesive strategy and strengthen their position in discussions with the EU.

Indonesia has been raising its objections to the EUDR among EU officials since the law was first floated.

Although Indonesia and Malaysia have been part of the Joint Task Force with the European Union to share views and proposals, Indonesia is now seeking a broader, bloc-wide approach. READ MORE