Indonesia Urged to Strengthen Diplomacy to Counter EUDR Impacts
Jakarta – The Indonesian government is urged to strengthen global diplomacy to minimise the impact of the European Union Deforestation Regulation (EUDR) on national export performance. The policy is seen as a potential non-tariff barrier for several of Indonesia’s flagship commodities, particularly from the plantation sector.
This was explained by Mohammad Faisal, Executive Director of the Center of Reform on Economics (CORE) Indonesia. He stated that the government needs to ensure national export interests remain protected through a measured diplomatic approach.
He assessed EUDR as a form of non-tariff barrier for plantation commodities entering the European Union market. “The Indonesian government needs to strive so that the implementation of EUDR has a minimal impact on our exports,” he said, as quoted from a press release on Friday, 20 March 2026.
In the context of the global vegetable oil market, EUDR only applies to palm oil and soybean oil. Meanwhile, rapeseed oil, sunflower oil, and other vegetable oils produced by the European Union are not included in the policy.
This situation is seen as creating unequal treatment for producer countries like Indonesia. Faisal mentioned that the momentum of negotiations for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) can be utilised to bridge the interests of Indonesian exporters.
In addition, readiness in the upstream sector such as plantations and agriculture needs to be strengthened to meet the standards set in EUDR.
He reminded that if not anticipated well, non-tariff barriers could negatively impact national export performance, including export revenues that support various programmes of the Plantation Fund Management Agency (BPDP).
One of the main challenges in implementing EUDR is the traceability aspect of the supply chain. To meet these requirements, Faisal assessed that technical support from the European Union as a trading partner is needed.
He also emphasised the importance of mutually beneficial cooperation between the two parties. “If the European Union wants to ensure that commodities entering its region are legal and not related to deforestation activities, they must help developing countries like Indonesia to meet those standards,” he asserted.
On the other hand, Faisal viewed the EUDR policy as an opportunity to improve plantation sector governance, particularly in implementing sustainability principles. He stressed that increasing commodity production should no longer rely on land expansion, but rather through intensification strategies.