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Antara - 1 hour 31 minutes ago
Nusa Dua (ANTARA) - The Indonesian government sent a letter of protest to the World Bank related to the draft framework for the financial institutions group of palm oil, which judgment harm the development of oil palm in Indonesia.
"I've just sent a letter on behalf of the Government of Indonesia to the World Bank and IFC (World Bank subsidiary), on the government's position based on the` draft `that they update not balanced," said Deputy Trade Minister Mahendra Siregar on "Indonesian Palm Oil Conference and Price Outlook 2010, "in Nusa Dua, Bali, on Thursday.
The draft is The World Bank Group `s Framework for Engagement in The Palm Oil. The draft framework, the assessed Mahendra, just emphasize one concept of sustainability in the environment only, regardless of the economic aspects of social welfare and progress, in terms of the loan for oil palm.
The World Bank's lending strategy review to the palm oil industry, because the industry is suspected to lead to deforestation, resulting in high carbon emissions and damage to biodiversity issues.
"I see (the framework of the World Bank and IFC's) impression is less fit," said Mahendra. According to him, the World Bank as the international financial institutions should encourage their members, in this case Indonesia, how can fulfill the requirements of the loan, not complicate.
Recognized Mahendra, the current national oil palm companies are more powerful than 10 years ago, so it does not need assistance from the World Bank and IFC directly.
"But because it is an international institution, then the view that they set will be a reference for others," he said.
Mahendra confirmed that the World Bank's framework should be able to make developing member countries, not impose requirements that hinder the progress of the country
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