Economy

Countries, including US, seek changes to EU deforestation regulation – Economy


s a regulatory initiative developed by the European Union (EU) aiming to impose comprehensive testing requirements on various agricultural and forestry commodities, the EU Deforestation-Free Regulation (EUDR) is seen as a significant challenge that could harm Indonesian agricultural and forestry commodities, including palm oil, and undermine Indonesia’s efforts and commitments in addressing issues related to climate change and biodiversity protection in line with multilateral agreements and conventions.

In response to this situation Indonesia has emerged as a leading voice in expressing serious concerns and disagreement with the EU’s discriminatory actions against palm oil through the EUDR. Additionally, Indonesia, along with Malaysia and the EU, have agreed to establish an Ad Hoc Joint Task Force on the EUDR to address various issues related to the implementation of the EUDR faced by Indonesia and Malaysia. This task force is also tasked with identifying the best solutions and resolutions regarding the implementation of the EUDR.

“The implementation of the EUDR will clearly hurt and disadvantage vital agricultural and forestry commodities for us such as cocoa, coffee, rubber, timber products and palm oil,” Coordinating Economic Affairs Minister Airlangga Hartarto told representatives of civil society organizations and NGOs in Brussels in May last year.

Aligned with Indonesia’s and Malaysia’s efforts, bipartisan groups from both the Republican and Democratic parties in the United States have also highlighted the unfairness of EUDR policies for farmers entering the European market. Delaying the implementation or modifying the EUDR regulations is considered one of the viable solutions for the current situation.

Opposition to the EUDR policy is also in line with the views of the EU’s agriculture minister. Additionally, 20 out of 27 ministers have called for the postponement of the EUDR at the recent Agriculture Fisheries Council Configuration (AGRIFISH) meeting.

Coordinating Economic Affairs Minister Airlangga Hartarto.

Coordinating Economic Affairs Minister Airlangga Hartarto

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“US opposition to the EUDR is bipartisan, so EUDR opposition initiated by Indonesia during a joint visit between the Economic Affairs Minister and the Prime Minister of Malaysia, continues to receive support from like-minded countries. Some time ago, both Republicans and Democrats also questioned the EUDR. Therefore, like-minded countries are inspired by what Indonesia and Malaysia are doing,” stated Minister Airlangga during a doorstop session at the Office of the Coordinating Economic Affairs Minister on Wednesday.

Moreover, the EUDR policy, which has also drawn attention from The New York Times and Financial Times, is expected to have impacts on sustainable supply chains, prices and consumer choices, as well as causing problems for farmers and exporting countries. With these potential impacts, various food and commodity producers are hoping for a more measured approach.

Leading agricultural association in the EU, Copa-Cogeca, has also recommended delaying the implementation of the EUDR policy because it is not feasible to implement it due to inadequate framework preparation time that cannot be completed by the EUDR policy implementation deadline.

In addition to the criticisms expressed by the US and the European agricultural association regarding the EUDR policy, concern has also been voiced by many countries, including India and Brazil, about the demands of implementing the EUDR policy. (dfm/fsr)

This article was published in collaboration with Coordinating Ministry for Economic Affairs Republic of Indonesia



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