Indonesia’s palm oil sector worries over costs and security after EU deforestation law delay

Published 2024년 10월 10일

Tridge summary

The European Commission has proposed a delay of the EU Deforestation Regulation (EUDR), which was set to be enforced from December 30, 2025, until the same date in 2025. The regulation aims to prohibit the sale of commodities in EU markets that have been sourced from deforested or degraded land after December 31, 2020. The decision is pending approval from the European Parliament and Council. Indonesia, a major producer of palm oil, has raised concerns about the regulation, including the demand for geolocation data and potential security risks. While some Indonesian companies are prepared to meet the EUDR's standards, other industry representatives believe the postponement is unnecessary. The palm oil sector is crucial for Indonesia's economy and employment, but it has been linked to deforestation.

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Original content

Originally set to take effect on December 30, the EU Deforestation Regulation (EUDR) requires that commodities such as palm oil, timber, soybeans, coffee and cattle sold in EU markets must not come from land deforested or degraded after December 31, 2020. Last Wednesday, the European Commission proposed delaying enforcement of the regulation to December 30, 2025, to “give concerned parties additional time to prepare”, pending approval from the European Parliament and Council. “For Indonesia, what is important is the implementation of the policy, not just it being postponed,” he told reporters on Thursday. The minister highlighted concerns about the EU’s demand for detailed geolocation data on agricultural land. He warned that foreign access to such data could pose security risks. Indonesia assesses sustainability using its own Indonesia Sustainable Palm Oil (ISPO) standard, which the EUDR does not recognise. During a meeting of the Asean Economic Community Council in Laos on ...

Source: UkrAgroConsult