Ky Points of Palm Oil Protocol in the IEU CEPA Agreement

Director General of International Trade Negotiations at the Ministry of Trade (“ Kemendag ”), Djatmiko Bris Witjaksono, has confirmed the facilitation of palm oil and derivative product exports to the European Union following the conclusion of the Indonesia–European Union Comprehensive Economic Partnership Agreement (“ IEU-CEPA ”). This is stipulated in a dedicated protocol, namely the Palm Oil Protocol.

“The palm oil sector and its derivatives are a key pillar of Indonesia’s economy. Therefore, there is a specific protocol on palm oil,” stated Djatmiko.

The protocol contains several provisions aimed at securing recognition of the sustainability of Indonesian palm oil and its derivative products under theEuropean Union Deforestation Regulation(“ EUDR ”). The provisions of this protocol include environmentally friendly palm oil through reduced deforestation, improved welfare for farmers and Micro, Small, and Medium Scales Enterprises (Usaha Mikro, Kecil dan Menengah- “ UMKM ”) through access to training, technology, and the European market; enhanced role of theIndonesian Sustainable Palm Oil(“ ISPO ”) certification through international recognition schemes and technological cooperation; and investment cooperation, including the exchange of satellite-based forest monitoring information and green investment initiatives.