Eco-labeling boosts, not hinders exports
JAKARTA (JP): Indonesian exporters should not see eco- labeling requirements imposed by most developed countries as trade barriers but, instead, as a tool to persuade costumers in those countries to buy Indonesian products, an executive says.
Hans-Dieter Haury, chairman of the German Advisory Assistance to the Indonesian Ministry of Trade, said yesterday that eco- labeling is a new trend of costumer preference in developed countries and in some developing countries as well.
He explained that in accordance with increasing environmental consciousness across the globe, consumers with growing purchasing power now demand products which are environmentally friendly.
"If Indonesian businessmen do not follow the trend, their products will not be accepted well on international markets," Haury told journalists before chairing a seminar on eco-labeling as a new challenge for the Indonesian industries.
Ismeth Abdullah, administrator of the Export Support Board of the Ministry of Trade, said Indonesian export-oriented companies should follow the eco-labeling trend rather than oppose it.
"We should consider eco-labeling as a way to improve our market shares in developed countries rather than as a threat to our exports," Ismeth said.
Eco-labeling is currently imposed on a wide-range of products, including textiles, garments, wood products, rubber, leather goods, food, pulp and paper.
Losses
State Minister of Environment Sarwono Kusumaatmadja indicated that Indonesian textile and garment industries might have already lost some of their potential export markets due to insufficient adjustments to the eco-labeling policy of industrial countries.
During the January-July period of this year, the country's exports of textiles and textile products declined by 8.5 percent to US$3.3 billion from the same period of last year. During the same period this year, exports of wood products declined by 0.38 percent to $3.1 billion.
Earlier this year, Indonesian wood products were reportedly boycotted by some 400 city administrations in Germany.
Some speculated that the boycotts resulted from pressures by environmental groups which do not believe in the sustainable management of Indonesian forests. Chairman of the Association of Indonesian Wood Panel Producers, Muhammad (Bob) Hasan, argued that the boycotts were motivated more by commercial objectives rather than by environmental concerns.
Haury told The Jakarta Post that Germany is a leader among European countries where environmental issues are concerned. He predicted that 10 percent of German consumers are very concerned with environmentally-friendly products.
He said meeting eco-labeling requirements is actually not a difficult task for Indonesian entrepreneurs. He compared eco- labeling with halal (lawful) labeling imposed by some Islamic countries, including Indonesia, which require consumption products, especially food and beverages, to meet Islamic standards.
"Products with halal labels will sell better here than those without the labels. The same thing happens in Europe, consumers prefer products with eco-labeling to those without them," Haury said.
He hailed the Indonesian government's initiative to establish an eco-labeling agency, which is expected to start operating next year.
Emil Salim, a former state minister of environment and population, was appointed by the government to lead the eco- labeling working group for wood-based products, the forerunner of the eco-labeling agency. (rid)