Indonesia’s palm oil producers are optimistic that the upcoming Comprehensive Economic Partnership Agreement (CEPA) with the European Union will significantly boost exports once tariff eliminations take effect, potentially as early as 2027. However, the EU’s Deforestation-Free Regulation (EUDR) remains a major hurdle, requiring imports to prove they are not sourced from deforested land through geolocation data. Industry leaders, including Indonesian Palm Oil Association (GAPKI) chairman Eddy Martono, warn that the regulation could burden smallholders, stressing the need for Indonesia to strengthen its governance and compliance systems to meet EU standards. To address these challenges, Martono highlighted the importance of enhancing Indonesia’s mandatory ISPO (Indonesian Sustainable Palm Oil) certification, positioning it as a global benchmark for sustainability. As of September 2025, palm oil production reached over 43 million tons, with exports of 25 million tons generating US$27.3 billion in foreign exchange. While Indonesia-EU trade totaled US$30.4 billion in 2024 with a US$4.5 billion surplus, the phased implementation of the EUDR—by late 2025 for larger firms and mid-2026 for smallholders—underscores the urgency for Indonesia to align its industry standards with international sustainability requirements.Source: https://jakartaglobe.id/business/eu-trade-pact-a-boon-for-indonesian-palm-oil-but-deforestation-law-remains-in-the-way  (ICE GIACARTA)

Fonte notizia: Jakarta Globe, 13 November 2025