![\"\"](\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/10\/mukti_sardjono__gapki.id___FGD_.jpg?resize=1085%2C661&ssl=1\")
<\/p>\nJAKARTA \u2013 The Indonesian palm oil industry is considered relatively ready to comply with the implementation of European Union Deforestation-free Regulation (EUDR). But the independent oil palm smallholders remain the most vulnerable link in the palm oil supply chain.<\/p>\n
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The Indonesian Palm Oil Association (GAPKI) Executive Director, Mukti Sardjono, made the statement during the Focus Group Discussion (FGD) as a follow-up to FOLUR with the theme \u201cStrengthening regional preparedness for EUDR\u201d in Jakarta.<\/p>\n
In his presentation titled \u201cReadiness of Indonesian Palm Oil Industry In Facing EUDR: Strengthening Traceability and the Inclusion of Palm Smallholders\u201d<\/em>, Mukti stated that the delay of EUDR had not reduced its requirements. But the delay should be taken as time for preparations.<\/p>\n After being postponed twice, the Regulation (EU) 2025\/2650 enters into force on December 23, 2025. Obligation for compliance will begin on 30 December 2026, for large and medium-sized operators, downstream operators, and traders. Micro and small operators are required to comply starting from 30 June 2027.<\/p>\n There are three core EUDR requirements:<\/p>\n Under the European Commission\u2019s classification as of 22 May 2025, Indonesia falls into the standard risk category. This means full due diligence applies without a fast-track option, and a minimum inspection rate of 3 percent is set for operators.<\/p>\n The European Union (27 countries) is now still the fourth largest destination of Indonesia\u2019s palm oil exports. Its export volume tends to decline, from 3.34 million tons in 2024 to 3.24 million tons in 2025. As of June 2026, Indonesian palm oil industry\u2019s exports to the EU were recorded at around 1.65 million tons.<\/p>\n GAPKI has assessed the readiness of each link in the supply chain as follows:<\/p>\n The smallholders\u2019 oil palm plantations cover approximately 6.93 million hectares, representing about 41 percent of the national oil palm plantation areas. However, it is estimated that fewer than 10 percent of these smallholders possess a Cultivation Registration Certificate (STDB) and the corresponding land map.<\/p>\n Challenges include limited data coverage, registries that do not track FFB flows, the informal nature of middlemen, and the administrative and financial burdens placed on smallholders.<\/p>\n GAPKI proposes a “regulated inclusion” approach. Under this model, loading ramps and middlemen continue to operate but are required to be legalized, record every transaction, and ensure traceability. According to Mukti, eliminating loading ramps would cut off smallholders’ access to mills, whereas leaving them informal creates loopholes regarding the origin of Fresh Fruit Bunches (FFB).<\/p>\n In this scheme, every transaction is recorded with the smallholder\u2019s ID or STDB number, the weight, and the date. Digital records are linked to the mill, and verified aggregators maintain the smallholder’s identity throughout the supply chain. “The measure of success is that smallholders remain integrated into the supply chain, not merely the volume that passes verification,” he emphasized.<\/p>\n Regarding funding, GAPKI advocates for utilizing the Palm Oil Revenue-Sharing Fund (DBH Sawit) to register smallholders, in accordance with Ministry of Finance Regulation (PMK) 10\/2026. GAPKI also proposes that the BPDP incentives prioritize smallholders who already possess an e-STDB. Cooperatives and farmer groups are considered the most effective vehicles for collective mapping and record-keeping.<\/p>\n GAPKI offers recommendations for follow-up actions across four groups:<\/p>\n GAPKI proposes a phased roadmap:<\/p>\n During the discussion session, participants from the regions inquired about the status of smallholders whose plantations are located within forest areas. Mukti emphasized that the EUDR requirements are mandatory. Plantations must be deforestation-free as of December 31, 2020, and meet legality standards in accordance with Indonesian regulations. For land situated in Convertible Production Forest (HPK) areas, there remains an opportunity to resolve status issues through local government channels. However, legalizing plantations located in protected forest areas is not feasible.<\/p>\n In concluding the presentation, all stakeholders were invited to address a key question: who bears the costs associated with e-STDB registration and the mapping of independent smallholders? Independent smallholders will only achieve the necessary level of readiness if they are encouraged to form groups or cooperatives and are not burdened with the full cost of compliance.<\/p>\n This Focus Group Discussion (FGD) was organized under the FOLUR (Food Systems, Land Use and Restoration) program in collaboration with the Directorate General of Estate Crops, Ministry of Agriculture. The forum brought together representatives from the Coordinating Ministry for Food Affairs, the Ministry of Trade, BPDP, the Agricultural Attach\u00e9 of the Indonesian Embassy in Brussels, regional plantation agencies, and associations representing the palm oil, cocoa, and coffee sectors. (Fetry Wuryasti)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" JAKARTA \u2013 The Indonesian palm oil industry is considered relatively ready to comply with the implementation of European Union Deforestation-free Regulation (EUDR). But the independent oil palm smallholders remain the most vulnerable link in the palm oil supply chain.<\/p>\n","protected":false},"author":1,"featured_media":32386,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3710,3708,3709],"tags":[],"class_list":["post-32385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-info-activity","category-publication","category-recent-news"],"yoast_head":"\nTime extended, Demand remains<\/strong><\/h2>\n
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European Union remains important market<\/strong><\/h2>\n
Independent growers are still the most vulnerable<\/strong><\/h2>\n
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\u201cRegulated Inclusion\u201d concept: Loading Ramp shouldn\u2019t be deleted<\/strong><\/h2>\n
Role of each stakeholder<\/strong><\/h2>\n
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Road map until June 2027<\/strong><\/h2>\n
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Land legality <\/strong>remains an absolute requirement<\/strong><\/h2>\n