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Carbon Standard Applied by Foreign Countries May Disturb Indonesia's Export

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Carbon standards applied by several foreign countries may disturb Indonesia's overseas sales as the negotiation on the rules could not be done yet due to the absence of the real international standards for the maximum level of CO2 allowed to be released in production of each export product, Trade Minister Mari Elka Pangestu said Wednesday.

The minister said that the climate talks in Copenhagen next month was expected to produce an agreement on the maximum level of carbon that may be produced and the real definition of the carbon standards.

"It is difficult to discuss and negotiate should there has not been any result yet on the (upcoming) talks in Copenhagen, despite we need to negotiate for some regulations of carbon tax on products which have not met CO2 standards, applied by several countries," Pangestu said at her office.

"The rules can discriminate our products. They must be cautioned, a negotiation is needed to prevent such rules from disturbing our exports," she said.

Indonesia is the world's largest exporter for palm oil and rubber.

The minister said that the rules so far had given indications for hampering exports in the country.

The rules "have not disturbed for 100 percent now," she said.

The southeast Asia largest economy has enjoyed the start of rising demand of commodity along with the global economic recovery.

The government has revised up its overseas sales target from the initial minus 30 percent to 20 percent this year.

(Xinhua News Agency November 26, 2009)