JAKARTA – The Indonesian Palm Oil Association (GAPKI) has stated that the European Union Deforestation Regulation (EUDR), which will be applied from the end of this year (2025), will not just pose a challenge for Indonesia’s palm oil industries but it will also function as a driver to accelerate the improvement of governance in the national palm oil industries.
GAPKI Chairman Eddy Martono admitted that palm oil exports to European Union (EU) have shown a declining trend since 2018. But he is confident that there are still possibilities to expand market access, including by utilizing partner countries as alternative routes.
“One of strategies that can be implemented is by making Egypt as a hub for palm oil shipping to European market,” he said during a public discussion of “Step by Step Journey of EUDR: Burden or Benefit?” in Jakarta on Thursday (3/7/2025).
But despite the fact, Eddy Martono emphasized the importance of preparations of Indonesia’s palm oil industries in making adjustments as required by global environmental regulations. “If we don’t comply with the EUDR, we’ll be possibly facing pressures for lower prices. This is not just a matter of export, but also a matter of our competitiveness in the market,” he said.
GAPKI saw the implementation of EUDR as a trigger to accelerate the implementation of Indonesian Sustainable Palm Oil (ISPO) certification, especially among palm smallholders. So far, only around 1% of smallholders’ plantations have been certified with ISPO.
“This is the time to improve our governance. We shouldn’t allow our smallholders, who are the most affected, become unprepared. The government should give a special attention to smallholders in terms of mentoring and funding,” said Eddy.
He also expressed hope that EU will reconsider the time of EUDR implementation, especially for smallholders. “If possible, it should be delayed again, so that we’ll have more time to prepare our smallholders. This is not just for the sake of export, but also for pursuing systemic transformation in our palm oil industries,” he added.
The EUDR is the first policy in the world that targets stopping global deforestation caused by consumption of agricultural and forestry commodities, such as palm oil, coffee, cocoa, meat and woods. After a delay of one year, the regulation will be implemented by EU by the end of 2025 for big companies and since June 2026 for smallholders. (*)
