Indonesia and Malaysia seek active cooperation with the EU and the Netherlands to advance sustainable and deforestation-free supply chains

Published 2024년 8월 6일

Tridge summary

The European Union's Deforestation Regulation (EUDR), aimed at reducing deforestation linked to imported products like palm oil, has sparked concern among Indonesia and Malaysia, the world's largest palm oil producers. The countries argue that the regulation infringes on their sovereignty and could negatively affect their economies, as palm oil contributes significantly to their GDP. Smallholder farmers face challenges in complying with the regulation, which could lead to increased costs and exclusion from the supply chain. However, efforts are being made to promote sustainable palm oil production and traceability, with the support of the Dutch embassies and collaborative research projects. Indonesia is conducting a EUDR pilot project and plans to align its monitoring system with the EUDR. The article highlights the complexities and potential implications of the EUDR, underscoring the need for dialogue and cooperation to ensure sustainable palm oil production while addressing concerns about deforestation and biodiversity loss.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Indonesia and Malaysia are the largest palm oil producers in the world, with 47 million tons and 19 million tons, respectively. It is an important commodity for both countries, since it has the highest yield per hectare compared to other oil crops and accounts for approximately 40% of all traded vegetable oil. The Netherlands stands out as the largest importer of palm oil within the European Union (EU). In recent years, people have become aware that palm oil production leads to deforestation and biodiversity loss. Also, it causes disputes between palm oil companies and indigenous people (who have historically utilized the land), a poor working environment, and income gaps for smallholder farmers. As a result, there is a growing recognition of the need for sustainable palm oil production to mitigate damage. ‘Indonesia and Malaysia are the largest palm oil producers in the world, with 47 million tons and 19 million tons respectively’' Perceptions of the EUDR may vary across ...

Source: Agroberichtenbuitenland