AMSTERDAM – The Indonesian Palm Oil Association (GAPKI) held a dialogue with MVO Netherlands the Dutch oils and fats industry association at Indonesia House Amsterdam. The event was facilitated by the Embassy of the Republic of Indonesia in The Hague and attended by the Indonesian Ambassador to the Kingdom of the Netherlands, L. Amrih Jinangkung.

The dialogue addressed the latest developments in Indonesia’s palm oil policies and their relationship with European Union policies, specifically the EU Deforestation-free Regulation (EUDR) and the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).

GAPKI appreciates support of KBRI and MVO Netherlands

In his remarks, GAPKI Chairman Eddy Martono expressed his gratitude to the Indonesian Embassy for facilitating the dialogue and commended the presence of MVO Netherlands as a demonstration of the commitment to fostering constructive engagement between the Indonesian palm oil industries and the Netherlands.

“This is not merely a matter of technical regulation. It is a framework for our future relationship,” he said.

He emphasized that the palm oil industry is the backbone of Indonesia’s economy, supporting millions of livelihoods, while also acknowledging the responsibility to protect forests and biodiversity. The challenge lies in ensuring that sustainability and economic development reinforce rather than conflict with each other.

Palm oil export governance via DSI

Eddy Martono highlights two policy developments that will impact the future of Indonesia’s palm oil industry and its trade relations with Europe.

The first is the new export policy implemented through PT Danantara Sumberdaya Indonesia (DSI). Under Government Regulation No. 24 of 2026, palm oil is included in the initial group of strategic commodities within this new framework of export governance. The policy aims to strengthen:

• Palm oil export transparency
• Export oversight
• Foreign exchange management
• Indonesia’s bargaining position in the international market

Implementation of the DSI policy is being carried out in stages, with full implementation targeted for no later than January 1, 2027.

Palm protocol in IEU-CEPA opens new opportunity

The second development is the IEU-CEPA, which is considered to offer complementary opportunities for Indonesia’s palm oil sector. The agreement includes a specific protocol on palm oil designed to facilitate trade in sustainable palm oil products through structured dialogue and cooperation regarding sustainability and regulations.

The IEU-CEPA also regulates:

• Duty-free quotas for crude palm oil (CPO) and palm kernel oil (PKO)
• Opportunities to expand market access for Indonesian palm oil products in the European Union once the agreement enters into force.

According to Eddy Martono, Indonesia’s primary challenge is ensuring that expanded market access is matched by credible traceability, compliance with sustainability standards, and proper recognition of Indonesia’s certification system, all without compromising the competitiveness of Indonesian palm oil in the European market.

EUDR: Bridging Brussel policy and ground reality

Regarding the EUDR, Eddy Martono acknowledged that its implementation presents significant challenges but also opens up opportunities for a transparent, science-based, and collaborative approach.

“It is crucial for us to bridge the gap between policy intentions in Brussels and the realities on the ground in Indonesia,” he asserted.

He emphasized that these various developments in palm oil policy should not be viewed in isolation, but rather as part of a broader effort to strengthen Indonesia-EU cooperation. Through open communication and a spirit of partnership, both parties can find a path that respects the interests of all stakeholders from smallholders in Indonesia to consumers and businesses in Europe.

“We are here to listen, share perspectives, and work together,” he concluded. (Fetry Wuryasti)