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

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.