Indonesia, Malaysia Joint Task Force Seeks To Minimize Impacts From EU’s Deforestation Law – CoffeeTalk

Indonesia and Malaysia have formed a joint task force to address the European Union’s deforestation-free regulation (EUDR), which requires suppliers of agricultural products and cattle to prove they don’t contribute to forest degradation. The EUDR, which will come into force next year, will significantly impact Indonesia’s crude palm oil exports to the EU, one of the world’s largest commodity buyers. The task force will seek solutions to the EUDR implementation, as it will pose challenges to both Indonesia and Malaysia. Indonesia will struggle to meet the EU’s traceability and transparency requirements, as the local palm oil (CPO) supply chain relies on individual farmers who lack necessary certification. Many Indonesian CPO producers are unaware of the EUDR, requiring training and information. The task force has held discussions with EU officials to minimize the impacts of the regulation, which could push traditional farmers from the CPO supply chain. Europe remains Indonesia’s third-largest export market after China and India.

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