Latest news with #GAPKI
The Independent
23-05-2025
- Business
- The Independent
The four ‘high risk' countries to face new strict checks in EU
Four countries will face the strictest import checks under the EU 's groundbreaking anti- deforestation law. Belarus, Myanmar, North Korea, and Russia have been designated as "high risk" for contributing to deforestation, according to a European Commission act published Thursday. Yet nations with historically high deforestation rates, such as Brazil and Indonesia, have been categorised as "standard risk," facing less stringent compliance checks on exports to Europe. This landmark legislation mandates due diligence for companies introducing products like soy, beef, palm oil, timber, cocoa, coffee, and chocolate into the EU market. It has faced strong opposition from Brazil and Indonesia, who argue the regulations are overly burdensome and expensive. The law's tiered system means EU authorities will conduct compliance checks on 9 per cent of companies exporting from high-risk countries, compared to just 3 per cent from standard-risk nations and 1 per cent from low-risk countries like the United States. While companies from all listed countries must provide supply chain information, those from low-risk nations will not be required to assess and address deforestation risks. Companies in high risk and standard risk countries will need to show when and where the commodities were produced and provide "verifiable" information that they were not grown on land deforested after 2020. Indonesia Palm Oil Association, GAPKI, said the EU should have branded the world's largest palm oil exporter Indonesia as a low-risk country, along with the U.S., China, Thailand and Australia. "The EU did not see Indonesia's achievement in significantly reduced deforestation rate in recent years," GAPKI secretary general Hadi Sugeng Wahyudiono said, adding that due diligence on shipments would increase cost and reduce palm oil's competitiveness. Campaigners criticised the EU decision to impose the strictest checks on only four nations, but said even lower-risk countries would face some, albeit simpler, due diligence obligations. "In practice, this shouldn't undermine the power of this law to save forests," said Giulia Bondi, campaigner at non-profit group Global Witness. Rainforest Foundation Norway (RFN) was less optimistic and urged the EU to strengthen controls. "It is simply unbelievable that Brazil, responsible for 42 per cent of tropical forest loss in 2024, more than a doubling since the previous year, is not rated as high risk," said RFN director Toerris Jaeger, citing a recent report from Global Forest Watch. The Commission said it had labelled countries based on scientific evidence and data. The EU law will apply from the end of 2025 for large companies, and from June 2026 for small firms. Failure to comply could result in fines of up to 4 per cent of a company's turnover in an EU country.
Business Recorder
18-05-2025
- Business
- Business Recorder
Indonesia palm oil group GAPKI urges govt to delay levy hike
JAKARTA: The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy warning it could harm competitiveness amid global trade uncertainties due to the US tariffs and geopolitical tension. Indonesia is due to raise its palm oil export levy to between 4.75% and 10% from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at 3% to 7.5%. 'The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports,' GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati. Indonesia, the world's biggest palm oil producer, is facing proposed US tariffs of 32%, while number two producer Malaysia faces a 24% rate. The tariffs have been put on hold until July. 'It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the US market which is currently dominated by Indonesia,' the group said. Malaysia charges an export duty of between 3% and 10%, depending on the price of palm oil. For May, the duty has been set at 10%. Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from US tariffs. The tax is separate to the levy. Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said. 'There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives,' the group added. The finance ministry and coordinating ministry of economics did not immediately respond to a request for comments.
Business Recorder
17-05-2025
- Business
- Business Recorder
Indonesia palm oil group GAPKI urges government to delay levy hike
JAKARTA: The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy, warning it could harm competitiveness amid global trade uncertainties due to the U.S. tariffs and geopolitical tension. Indonesia is due to raise its palm oil export levy to between 4.75% and 10% from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at 3% to 7.5%. 'The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports,' GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati. A spokesperson for the palm oil fund that collects the levy said GAPKI's request will be discussed at a meeting with government ministries next week. The finance ministry and coordinating ministry of economic affairs did not respond to a request for comment. Indonesia, the world's biggest palm oil producer, is facing proposed U.S. tariffs of 32%, while number two producer Malaysia faces a 24% rate. The tariffs have been put on hold until July. 'It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the U.S. market which is currently dominated by Indonesia,' the group said. Palm ends with third straight weekly loss Malaysia charges an export duty of between 3% and 10%, depending on the price of palm oil. For May, the duty has been set at 10%. Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from U.S. tariffs. The tax is separate to the levy. Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said. 'There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives,' the group added.
New Straits Times
16-05-2025
- Business
- New Straits Times
Indonesia palm oil group urges government to delay levy hike
JAKARTA: The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy, warning it could harm competitiveness amid global trade uncertainties due to the US tariffs and geopolitical tension. Indonesia is due to raise its palm oil export levy to between 4.75 per cent and 10 per cent from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at three per cent to 7.5 per cent. "The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports," GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati. Indonesia, the world's biggest palm oil producer, is facing proposed US tariffs of 32 per cent, while number two producer Malaysia faces a 24 per cent rate. The tariffs have been put on hold until July. "It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the US market which is currently dominated by Indonesia," the group said. Malaysia charges an export duty of between three per cent and 10 per cent, depending on the price of palm oil. For May, the duty has been set at 10 per cent. Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from US tariffs. The tax is separate to the levy. Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said. "There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives," the group added. The finance ministry and coordinating ministry of economics did not immediately respond to a request for comments.
CNA
16-05-2025
- Business
- CNA
Indonesia palm oil group GAPKI urges government to delay levy hike
JAKARTA : The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy warning it could harm competitiveness amid global trade uncertainties due to the U.S. tariffs and geopolitical tension. Indonesia is due to raise its palm oil export levy to between 4.75 per cent and 10 per cent from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at 3 per cent to 7.5 per cent. "The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports," GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati. Indonesia, the world's biggest palm oil producer, is facing proposed U.S. tariffs of 32 per cent, while number two producer Malaysia faces a 24 per cent rate. The tariffs have been put on hold until July. "It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the U.S. market which is currently dominated by Indonesia," the group said. Malaysia charges an export duty of between 3 per cent and 10 per cent, depending on the price of palm oil. For May, the duty has been set at 10 per cent. Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from U.S. tariffs. The tax is separate to the levy. Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said. "There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives," the group added. The finance ministry and coordinating ministry of economics did not immediately respond to a request for comments.
