Europe

European Union Bans Biofuel Material

European Union Bans Biofuel Material according to the results of an EU Commission meeting to eliminate the use of biofuels have resulted in the occurrence of the tension of crude palm oil crude oil producing countries, namely: Indonesia and Malaysia. The two countries from the Southeast Asia region have been very long committed, will always try to meet the demands of the European Union market.

The decision was taken by the European Commission, after going through a series of research. Because of the many negative impacts that have been caused on the various layers of society involved in the process. Starting from the beginning of land formation, nursery, planting, maintenance, harvesting of fruit, processing until it becomes crude palm oil.

The European Union Parliament has issued a policy to stop using Crude Palm Oil (CPO) in 2021. The decision was taken after the European Union Parliament agreed to use environmentally friendly renewable energy.

The statement is contained in the Report on the Proposal for a Directive of the European Parliament and of the Council on the Promotion of Energy of Renewable Sources. Parliament also agreed to press up to a maximum of 7 percent for the use of palm oil for renewable energy sources of transportation until 2030.

European Steps to Ban Biofuel Materials in the Report on the Proposal for a Directive of the European Parliament

The decision, made the largest CPO export producing countries such as Indonesia and Malaysia threatened to lose markets in the European Union. When viewed on average, the production of Indonesian and Malaysian CPO is around 80 percent of world production.

Indonesia’s export performance for palm oil which consists of crude palm oil (CPO), palm kernel oil (PKO) and derivatives to the European Union during semester I / 2017 reached 2.7 million tons, up around 42% compared to last year’s period of 1, 9 million tons.

In the Central Statistics Agency (BPS) report, the growth of processing industry exports is still dominated by palm oil commodities (16.30%). Meanwhile, the growth of the mining industry is dominated by coal (43.59%).

This situation is caused by factors in the increase in commodity prices in the global market, which in turn helped to lift the growth of exports for raw material commodities.

Material From Indonesia and Malaysia

Meanwhile, Indonesia’s exports to the European Union in the palm oil industry still rely on raw material exports, so it will not give Indonesia added value as obtained by other competitive countries.

There are five reasons for the European Union Parliament to issue a ban on the import of CPO and its derivative products, namely the palm oil industry creates deforestation, degradation of wildlife habitat, corruption, child labor, and human rights violations.

The European Union Parliament considers the Indonesian palm oil industry as one of the triggers of these problems. The reason was approved by 640 members of the European Union Parliament, while 18 others refused, and 28 chose to abstain.

European Union Commitment to Environmental Care

European retailers are also increasingly aware of being more concerned about the environment, social and human rights that arise from the palm oil industry, thus rejecting the use of CPO in food products sold, such as: Iceland Foods (UK), Carefour (France), Systeme U (France) , Del Haize (Belgium), Casino (France).

The question then is whether the wrong actions of European retailers reject CPO because of its concern for the environment, social and human rights ?. The answer, is not because of the dominance of control of space by oil palm plantations in Indonesia creating deforestation and bringing the impact of ecological disasters.

There are three types of workers on oil palm plantations:

1. Workers who work in palm oil processing companies (CPO) have fixed contracts and receive wages every month.

2. Oil palm harvesters, they are often contracted for one or two years. However, workers did not get a photocopy of the contract and were paid based on the target achieved.

3. Plantation maintenance workers, most of whom work seasonally and are very dependent on their working days. Plantation maintenance workers spray pesticides, spread fertilizers and weeding on plantations. They work without contracts.

Main Causes of European Union Bans Biofuel Material

Workers who work in oil palm processing companies, they receive wages in accordance with the minimum wage. To reach the daily target, many harvest workers bring their wives and children to help them.

While working conditions are very dangerous for children. Although Indonesia has ratified ILO Convention 182 on the worst forms of employment for children but this situation still occurs. K3 awareness (OSH) is still low.

Women work as harvesters, fruit pickers who fall or work as plantation maintenance workers, spray pesticides, spread fertilizer, or weed. Female workers do not get menstruation leave and maternity leave. But not for all oil palm harvesters and plantation maintenance workers.

Internal Sustainability of Workers Problems Reasons for the European Union Bans Biofuel Material

The results of the above study indicate that there are problems with the conditions of workers in oil palm plantations, if there are 6 main problems classified, namely:

1. There is inequality in the treatment of rights regarding contracts and wages between workers in the company, with oil palm harvesters and plantation keepers.

2. The still low level of security for workers on plantations provided by the company.

3. The company still allows early childhood to work on plantations, even though it has ratified ILO Convention 182.

4. There are acts of abuse from the company in treating women who want to take menstruation leave.

5. The company employs women under the dangerous zone as oil palm harvesters, plantation maintenance, pesticide sprayers, fertilizer spreaders, while social security has not been considered.

Millions of Hectares of Forest Land Turn Into Oil Palm Plantations

Control of space by oil palm plantation companies is quite high, including: control of oil palm plantations (HGU) by the private area of ​​10.700,000 ha and control of oil palm plantations (HGU) by SOEs covering 493,000 ha, overall control of space from situs bola parlay oil palm plantation companies covering 11,193. 000 ha. 33 of these cases came from conflicts in the plantation sector.

Mastery of space by oil palm plantations creates deforestation and brings ecological impacts.

Based on BNPB data in 2017 there were 2,175 disaster events in Indonesia, with details of floods (737 incidents), tornadoes (651 incidents), landslides (577 incidents), forest and land fires (96 incidents), floods and landslides (67 incidents ), drought (19 incidents), earthquakes (18 incidents), tidal / abrasion (8 incidents), and volcanic eruptions (2 incidents).

European Union Biofuel Material Because It Becomes Ecological Trigger

According to the records, 99.08% of them are ecological disasters (increasing frequency of tornadoes is the impact of climate change) 3.5 million suffer.

The processing of oil palm products from Indonesia made from domestic and together with foreign companies causes extraordinary labor problems.

All about prossesing cuts and annihilation of oil palm change, pollution of the land for communities labor this sector.

Trade negotiation is not for finishing this problem. In an inclusive dialogue outside trade negotiations, involving all Indonesia and the European Union must seek to this issues surrounding oil palm manner.

Company Systems Assessed as Failing to Protect the Interests of Local Communities

Regulations in the CEPA in result trade in palm oil product. Certification schemes such as the RSPO or ISPO that have no enforcement and have proven to protect interests local communities and all workers.

Entrepreneurs who are members of the Indonesian Palm Oil Entrepreneurs Association (Gapki) will fight the European Union. Because the palm oil does not pass the European Union market.

Chairman of Gapki, Joko Supriyono, said that Indonesian palm oil had not escaped because the European Union made a policy on Renewable Energy Directive II (RED II).

Under the policy, the European Union considers oil palm as a high-risk crop for deforestation. So, it is difficult for Indonesian palm oil to enter the European Union market.

“We will fight it on post 2030. There are various regulations and including this, just a draft study. We have to be compact to say we don’t agree,” Joko said when met at the Coordinating Ministry of Field Maritime Affairs, in Central Jakarta, on Tuesday, 2/26/2019.

Chairperson of Gapki Speaking About European Union Bans Biofuel Material

Even so, Joko will prepare a strategy first to counter the EU policy. In this case, said Joko, the entrepreneurs will coordinate with the government.

“We need to formulate later with various parties so that we can later. As a response, Indonesia does not declare disagreement and we also have to get ready if a dispute occurs on how we deal with it,” he explained.

Joko added that the Indonesian oil palm oil export market in the European Union is very large. So, if palm oil is indeed denied entry, the impact will be great for the palm oil industry in Indonesia.

“Our market is quite large. Even though some of these years have fallen, but we can be included in biodiesel, so they are people. The impact becomes very important,” he concluded.

Indonesia’s Coordinating Minister for Economic Affairs Objects to the European Union Decree

Coordinating Minister for Economic Affairs Darmin Nasution ensured that Indonesia and Malaysia. Would appeal the ban on the use of crude palm oil for biofuels from the European Union.

“This is a serious warning for us. Together with Malaysia, we have also agreed to go to Europe. At the beginning of the second week of April before they make a decision in parliament,” Darmin said in Jakarta.

Previously, the Commission of the European Communities or European Commission on Wednesday. Officially phased out the use of CPO-based biofuels by 2030 to 0%.

In the latest draft of the Renewable Energy Directive II (RED II) policy. The European Commission concluded that oil palm plantations had caused massive deforestation.

European Material from Impacting Indonesia

Nevertheless, said Darmin, the European Commission’s decision is not final. Because it still needs to be discussed at the level of the European Parliament and also the European Union Government. Both institutions reportedly still needed about two months. To finally officially decide whether the European Commission’s proposal would be accepted or rejected.

Previously, the Indonesian government had tried to lobby the European Union not to ban the use of palm oil biofuels. The main point is to protest the moratorium on oil palm expansion (extensification).

In addition, the major palm oil producing countries. That are members of the Council of Palm Oil Producing Countries (CPOPC) such as Indonesia, Malaysia and Colombia. Have previously sought to clarify and transparency to bo parlay 2 tim the European Union regarding RED II policies.

National palm production in 2018 reached 43 million tons, up 8% from the previous year. Exports to the European Union fell by 5% or to 4.78 million tons from the previous year.