Indonesian Preparing Response to US over Palm Oil Production

Medan, N Sumatra - Indonesia is preparing a detailed response on crude palm oil (CPO) production process to refute the US notification that it deems crude palm oil production to be environmentally unfriendly. The response will be delivered to the US Environmental Protection Agency (EPA), Zainal Baharuddin, the agriculture ministry's Director General for Agricultural product processing and marketing, said here on Friday. The EPA notification has not led to a boycott of Indonesian crude palm oil products overseas, however, it has worried national CPO producers, he said. Therefore, the government response is expected explain the factual conditions of crude palm oil production in Indonesia, he added. Additionally, Indonesia denies the allegation that the country's CPO production has harmed the environment. He could not confirm that the allegation is part of a campaign to harm Indonesia's CPO, but he saw indications that competing businesses were behind the notification. "If it's a trade competition, it's should be objective," he said. The agriculture ministry is currently preparing a letter to the United States to respond to the US Environmental Protection Agency's (EPA) notification that prohibits Indonesian CPO exports as of January 28, 2012. "On March 2, 2012 the government will invite all parties concerning the EPA's notification. And it's expected that the letter would be sent to the US on March 10, 2012," Deputy Agriculture Minister Rusman Heriawan said here on Wednesday. (*)