Indonesia's Ministry of Trade has announced that the European Union has committed to a special protocol in the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) that will recognize Indonesian crude palm oil (CPO) as sustainable. This is the first time such a protocol has been included in a CEPA agreement. According to Director General Djatmiko B. Witjaksono, the EU will recognize Indonesian CPO for both food and energy production. While this is a positive development, future exports must still meet sustainability requirements for traceability and certification. Additionally, Indonesia's CPO products will be exempt from EU import duties by 2027 at the latest, which could significantly boost exports since derivative products currently face tariffs of 5 to 12.8 percent. Despite the promising agreement, the Indonesian Palm Oil Association (GAPKI) is concerned that the benefits may be short-lived due to the European Union Deforestation Regulation (EUDR), set to take effect next year. The EUDR requires that all products sold in the EU, including palm oil, must not be produced on land that has been deforested. GAPKI Chairman Eddy Martono noted that while the IEU-CEPA will remove tariffs, Indonesian products must first comply with the strict EUDR requirements to take advantage of the deal. The ongoing IEU-CEPA negotiations will also determine which of Indonesia’s two domestic certifications, Indonesian Sustainable Palm Oil (ISPO) or Roundtable on Sustainable Palm Oil (RSPO), will be accepted by the EU.Source: https://indonesiabusinesspost.com/4909/markets-and-finance/indonesia-secures-eu-recognition-for-sustainable-palm-oil-under-new-trade-agreement (ICE GIACARTA)

Fonte notizia: Indonesia Business Post, 4 August 2025