Legislator asks govt to stand firm over us 'CPO ruling

Pekanbaru - The government should stand firm towards the United States in relation with the US Environmental Protection Agency (EPA)'s notification on CPO, a legislator said.

"America has many business interests in Indonesia. It has several mining companies, and is a major exporter of commodities such as soybean, maize, and wheat to Indonesia.So, they should keep their relations with us in good shape, including in trade," Aria Bima, deputy chairman of the House of Representatives (DPR)'s Commission VI on trade, industry, cooperatives, and small and medium scale business, state enterprises, said here Friday.

"As to their claim that our CPO is an unsustainable product because its emissions exceed the standard threshold, Indonesia must respond by giving appropriate explanations," he said.

He reminded the government that it must also seriously implement the principles of Indonesian Sustainable Palm Oil (ISPO) in oil palm cultivation and in the CPO production processes.

"If they ignore our explanations, we must retaliate by taking stern measures," the politician of the Indonesian Democratic Party of Struggle (PDIP), said.

As of March 1, 2012, Indonesia is under obligation to implement ISPO principles.

The US decision to ban Indonesian CPO products looked like a "trade war" measure , he said.

The US as a major soybean producer was only trying to find an excuse to reject Indonesiam oil palm. America was worried that Indonesia's palm oil which is cheaper could replace its soybean, maize, and sunflower seeds as materials to make biofuel or biodiesel, Bima said.

The legislator regretted the US stance.

"As a superpower, the US should ideally should show exemplary behavior in the practice of fair trade in the world. The US should not think only of its own profit , while leaving other countries to their own fate," he said.

Meanwhile, the agriculture ministry is currently

preparing a letter to the United States to respond to the US

Environmental Protection Agency's (EPA) notification that rejects

Indonesian CPO exports as of January 28, 2012.

"On March 2, 2012, the government will invite all concerned parties concerning the EPA's notification. And it's expected that the letter will be sent to the US on March 10, 2012," Deputy Agriculture

Minister Rusman Heriawan said in Jakarta, recently.