Indonesia urges EU to support farmers in adapting to deforestation rules

Indonesia has raised significant concerns about the European Union’s anti-deforestation regulation (EUDR), set to take effect on December 30, 2025, and its impact on smallholder farmers. The rules require companies supplying products to the EU market to provide geolocation data proving that goods such as cocoa, palm oil, coffee, and rubber do not originate from deforested land. As a leading producer of these crops, Indonesia fears that the compliance burden will disproportionately affect its nearly eight million smallholder farmers.

Speaking at an embassy event in Brussels, Erma Rheindrayani, Director for Americas and Europe at Indonesia’s Foreign Affairs Ministry, emphasized that while the EUDR cannot be changed, the focus must now be on its implementation to protect smallholder farmers. “The EUDR is here, and there’s nothing we can do to revise it. Our task is to ensure smallholders don’t suffer,” she stated. Indonesia is urging the European Commission to provide additional support to help farmers adapt to these new requirements.

Febriani Sumbung, a cocoa farmer from West Papua leading a cooperative of 170 producers, highlighted the high costs of compliance. She noted that mapping geolocation polygons to verify product origins recently cost thousands of dollars, yet not all farmers in her cooperative were covered. Such expenses could become unsustainable for small-scale farmers, amplifying Indonesia’s concerns about the economic impact of the EUDR on rural communities.

Today, a delegation of nine female smallholder farmers, accompanied by Indonesian officials, will meet with EU officials at the Commission’s environment (DG ENV) and international partnerships (DG INTPA) directorates to discuss these challenges. Indonesian diplomats clarified that they are not seeking a formal delay of the rules but hope for greater EU support. Meanwhile, the upcoming EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA), set to be signed on September 23, 2025, does not include concessions on the EUDR.

In the meantime, some palm oil buyers are already shifting to Malaysia, the world’s second-largest palm oil producer, where meeting geolocation requirements is considered easier. This trend could lead to economic losses for Indonesia. Jakarta hopes that the CEPA signing next week will strengthen trade ties with the EU and help address challenges posed by the new environmental regulations.

Tags: Indonesia, EU, palm oil, deforestation, restrictions