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Indonesian palm oil producers have welcomed the European Commission’s recent decision to remove the commodity and its derivatives from its list of dangerous chemicals.

The the move was part of a revision of the EC’s regulation on Registration, Evaluation, Authorization and Restriction of Chemicals.

“This is good news. It means tests on content and certification declaring absence of dangerous substances will no longer be needed,” said Purboyo Guritno, the head of foreign affairs of the Association of Indonesian Palm Oil Producers (Gapki).

The Reach revision will also free palm oil exporters from the need to make adjustments and preparations to meet standards set by the EC.

Purboyo said the move was correct as palm oil could be used for a variety of purposes.

“Palm oil is not only used in food products but also for products such as oleochemicals for making soaps, fatty acids, fatty alcohol and glycerine,” he said.

He said the commission’s decision would be very positive for the countries palm oil exports.

Trade Minister Mari Elka Pangestu also hailed the decision as good news for Indonesian palm oil exporters.

“It is more about chemical content. So, in view of the Reach regulation, the chemical content of palm oil is declared safe,” she said.

Since the Reach rules were issued on Dec. 18, 2006, the government had lobbied the EC on the matter.

The implementation of the regulation as of June 1, 2008, caused worries among exporters of products processed using chemicals, such as batik cloth, furniture, handicrafts, toys and footwear.

The government complained to the European Commission about the Reach regulation because the European Union had not firmly categorized palm oil as free of dangerous chemicals.

Indonesia is the world’s biggest producer of palm oil, which much of the commodity exported to the Europe. According to Trade Ministry data, shipments there reached $2.26 billion in 2009.

The country’s palm oil exports to Europe from January to April this year reached $930 million, about 20 percent of the country’s total exports of the commodity, which were worth $4.65 billion in the period.

The European Commission has followed up Indonesia’s request and tried to review other products for exemption from the regulation and has amended some parts of it as a result.

On June 7, the new European Union trade commissioner, Karel De Gucht, gave written clarification upon the request of the Ministry of Trade that palm oil derivatives such as fatty acid and glycerine are exempted products as stated in the Reach regulation.


Antara