Jakarta \u2013 The Indonesian government is urged to strengthen global\ndiplomacy to minimise the impact of the European Union Deforestation\nRegulation (EUDR) on national export performance. The policy is seen as\na potential non-tariff barrier for several of Indonesia\u2019s flagship\ncommodities, particularly from the plantation sector.<\/p>\n
This was explained by Mohammad Faisal, Executive Director of the\nCenter of Reform on Economics (CORE) Indonesia. He stated that the\ngovernment needs to ensure national export interests remain protected\nthrough a measured diplomatic approach.<\/p>\n
He assessed EUDR as a form of non-tariff barrier for plantation\ncommodities entering the European Union market. \u201cThe Indonesian\ngovernment needs to strive so that the implementation of EUDR has a\nminimal impact on our exports,\u201d he said, as quoted from a press release\non Friday, 20 March 2026.<\/p>\n
In the context of the global vegetable oil market, EUDR only applies\nto palm oil and soybean oil. Meanwhile, rapeseed oil, sunflower oil, and\nother vegetable oils produced by the European Union are not included in\nthe policy.<\/p>\n
This situation is seen as creating unequal treatment for producer\ncountries like Indonesia. Faisal mentioned that the momentum of\nnegotiations for the Indonesia-European Union Comprehensive Economic\nPartnership Agreement (IEU-CEPA) can be utilised to bridge the interests\nof Indonesian exporters.<\/p>\n
In addition, readiness in the upstream sector such as plantations and\nagriculture needs to be strengthened to meet the standards set in\nEUDR.<\/p>\n
He reminded that if not anticipated well, non-tariff barriers could\nnegatively impact national export performance, including export revenues\nthat support various programmes of the Plantation Fund Management Agency\n(BPDP).<\/p>\n
One of the main challenges in implementing EUDR is the traceability\naspect of the supply chain. To meet these requirements, Faisal assessed\nthat technical support from the European Union as a trading partner is\nneeded.<\/p>\n
He also emphasised the importance of mutually beneficial cooperation\nbetween the two parties. \u201cIf the European Union wants to ensure that\ncommodities entering its region are legal and not related to\ndeforestation activities, they must help developing countries like\nIndonesia to meet those standards,\u201d he asserted.<\/p>\n
On the other hand, Faisal viewed the EUDR policy as an opportunity to\nimprove plantation sector governance, particularly in implementing\nsustainability principles. He stressed that increasing commodity\nproduction should no longer rely on land expansion, but rather through\nintensification strategies.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-urged-to-strengthen-diplomacy-to-counter-eudr-impacts-1774018276", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }