JAKARTA: A senior Indonesian minister warned on Wednesday Southeast Asia’s biggest economy could consider exiting the Paris climate deal if the European Union goes ahead with a plan to phase out palm oil in renewable transportation fuel.
Indonesia, the world’s biggest palm oil producer, has lashed out at the EU after the bloc classified palm oil as a risky crop that caused significant deforestation and ruled that its use in renewable fuel should stop by 2030.
Speaking at a palm oil forum, Luhut Pandjaitan, the coordinating minister overseeing maritime and natural resources, said the EU “should not underestimate Indonesia” and pledged the government would firmly defend its national interest.
Palm cultivation is often blamed for deforestation and destroying the habitat of endangered animals such as orangutans and Sumatran tigers.
Indonesia’s government, however, says palm requires far less land to produce oil compared to crops such as soy and rapeseed.
“If the US and Brazil can leave the climate deal, we should consider that. Why not?” Pandjaitan said.
Under the Paris climate accord, Indonesia has committed to reducing its greenhouse gas emissions unconditionally by 29 percent and conditionally by 41 percent by 2030.
On Tuesday, the government said it plans to adopt sustainable economic policies which could help cut greenhouse gas emissions while boosting economic growth.
“The US was not sanctioned at all by the EU (after leaving the Paris accord),” said Peter Gontha, special staff at Indonesia’s foreign ministry.
He also said Indonesia faced EU pressure over palm oil despite the government declaring a moratorium on permits for new estates.
Indonesia claims palm is being discriminated against by the EU to protect the market of European oils such as sunflower and rapeseed oils.
Indonesia has said it is preparing to challenge the EU and its Renewable Energy Directive (RED II) at the World Trade Organization as soon as it is implemented. The government is also examining its relations with EU members which support the act.
EU delegates for Indonesia and Brunei have said the bloc is complying with WTO rules and continues to be open for discussion with Indonesian government over the issue.
Earlier this week, and Indonesian Trade Ministry official urged palm companies to log legal action of their own over the issue at courts.
Indonesia threatens to quit Paris climate deal over palm oil
Indonesia threatens to quit Paris climate deal over palm oil
- An Indonesian official said said the EU “should not underestimate Indonesia” and pledged the government would firmly defend its national interest
- Indonesia claims palm is being discriminated against by the EU to protect the market of European oils
Closing Bell: Saudi main index slips to close at 11,228
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, lost 23.17 points, or 0.21 percent, to close at 11,228.64.
The total trading turnover of the benchmark index was SR2.99 billion ($797 million), as 170 of the stocks advanced and 82 retreated.
On the other hand, the Kingdom’s parallel market Nomu gained 449.38 points, or 1.90 percent, to close at 24,093.12. This comes as 43 of the stocks advanced while 27 retreated.
The MSCI Tadawul Index lost 6.07 points, or 0.40 percent, to close at 1,511.36.
The best-performing stock of the day was Obeikan Glass Co., whose share price surged 7.54 percent to SR27.66.
Other top performers included Alamar Foods Co., whose share price rose 6.80 percent to SR47.10, as well as Saudi Kayan Petrochemical Co., whose share price climbed 6.79 percent to SR5.66.
Saudi Investment Bank recorded the steepest drop, falling 3.21 percent to SR13.56.
Jahez International Co. for Information System Technology also saw its share price fall 3.15 percent to SR13.55.
Rabigh Refining and Petrochemical Co. declined 2.78 percent to SR7.34.
On the announcements front, Tanmiah Food Co. reported its annual financial results for the period ending Dec. 31. According to a Tadawul statement, the company recorded a net loss of SR18.8 million, compared with a net profit of SR95.8 million a year earlier.
The net loss was mainly due to ongoing market challenges that resulted in continued pricing pressures in fresh poultry, inflationary cost pressures, higher financing expenses, and depreciation and ramp-up costs from new facilities, partially offset by increased production volumes and cost-optimization initiatives.
Tanmiah Food Co. ended the session at SR58.20, up 3.72 percent.
United International Holding Co., also known as Tas’heel, announced its annual financial results for the period ending Dec. 31. A bourse filing showed the company recorded a net profit of SR273.64 million in 2025, up 23.05 percent from 2024, primarily driven by a 23.4 percent rise in revenues. The revenue growth helped lift gross profit by 23.7 percent.
Tas’heel ended the session at SR146.80, down 0.28 percent.
