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Indonesia, the world's largest producer of palm oil, is negotiation with the European Union for the group acknowledgment on the country's environmental standard in producing palm oil, Indonesian senior official said here on Monday.
Indonesian Deputy Finance Trade Minister Bayu Krisnamurthi said that the country has kicked off applying eco-friendly standard in cultivating palm oil, or "the Indonesian Sustainable Palm Oil" by abbreviation of ISPO.
Under the rule, Indonesia's palm oil exporters are subject to comply with the country's environmental standard, he said.
In talks with the European Union, Indonesia wanted to stamp out the appliance of the union standard "the Roundtable on Sustainable Palm Oil", or RSPO, on the imported palm oil from Indonesia the products have already met with the Indonesia's environmental standard, which both have some similarities, said Krisnamurthi.
"This is in the level of negotiation with the European Union," said Krisnamurthi at the Borobudur Hotel.
"In fact, there are several criteria of ISPO similar with those in RSPO. So should the (Indonesian) exporters already have ISPO certification they should not be subjected to have RSPO, it is a repetition," he said.
The official said that the move is expected to reduce cost of Indonesian exporters.
Indonesian authorities have been requested that the palm oil growers in the country meet the ISPO standard.
Tens thousands of palm oil growers in the country have already had the certification, said Krisnamurthi.
Indonesia's export of crude palm oil and its derivative products witnessed at 15.1 million ton last year, falling by 24.5 percent from that at the previous year as global economic crisis sapped demands, data from agriculture ministry said.
Indonesia produced 26 million ton of palm oil last year and expects it to rise to 27.3 million ton this year, it said.
The country's palm oil planting area is also forecast to expand to 8.9 million hectares this year, rising from 8.7 million hectares last year, the ministry said.
