Indonesia, Malaysia send protest letter to EU on palm oil curbs

JAKARTA/BRUSSELS, Apr 09 (Reuters): The leaders of Indonesia and Malaysia, the world's two biggest palm oil producers, sent a letter of objection to the European Union (EU) criticising its decision to no longer consider palm oil as a green fuel and threatening the bloc's ties with the countries.

Last month, the European Commission determined that palm oil has resulted in excessive deforestation and that it should no longer be considered a renewable transport fuel, albeit with some exemptions.

It will become law unless a majority in the European Parliament or in the group of EU countries objects. So far, there are no indications that either will do so. Indonesia and Malaysia have both threatened a World Trade Organisation challenge against the EU plan.