Jakarta – The implementation of the European Union (EU) deforestation regulation (EUDR) will unfairly expose Indonesia’s oil palm growers, especially the smallholders, to a number of tough challenges.

The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that at one side the European policy will “force” the Indonesian government and the palm oil industry players to intensify efforts of seeking new markets outside of the EU market.

On the other side, the implementation of the regulation is potential to become a lethal blow to all smallholders in producing countries, including the Indonesian smallholders.

According to him, in Indonesia the European policy has the potential to kill millions of smallholders.

Eddy said that the EUDR is not fair. It requires the oil palm growers, including the smallholders, to report the geolocation plot of their plantation areas and concessions.

“The regulation will also affect the country benchmarking system and will divide countries into three categories, namely country of high risk, standard and low risk,” said Eddy Martono.

“Frankly speaking, with their small areas of plantations the smallholders will find it difficult to comply with the regulation,” he said.

“Before the implementation of the EUDR, our palm oil exports to EU have been decreasing,” he said.

“We’ve been trying to enter the non-traditional markets, such as that of the USA. We’re also trying to increase exports to China, Pakistan and Bangladesh and other markets. Our palm oil exports to those countries tend to rise,” Eddy Martono said during the public discussion of FoodAgri CNCB Indonesia with the theme of ‘Fighting Against the EU Deforestation Regulation’ on Tuesday, 01 August 2023.

The implementation of the EUDR is seen to hinder the export growth of several commodities of Indonesia, including palm oil, coffee, rubber, woods, cocoa and other derivative products. (*)

Source: sawitku.id