JAKARTA — The Indonesian government has raised serious concerns over the European Union Deforestation Regulation, or EUDR, saying it imposes a heavy administrative burden on smallholders while lacking clarity and consistency in its enforcement.

When it comes into force at the end of this year, the EUDR will ban imports into the EU market of seven forest-related commodities — soy, palm oil, coffee, cocoa, timber, rubber and beef — associated with deforestation and illegality. It will require producers and companies trading these commodities into the EU to provide detailed evidence proving they weren’t produced from land deforested since 2020.

Indonesia, as the world’s largest palm oil producer and also a major exporter of timber, coffee, cocoa and rubber, stands to be significantly affected by the EUDR. The government is working with the EU to prepare producers and traders for full compliance ahead of the EUDR’s enforcement date of Dec. 30, 2025.

However, concerns remain that the EU must address, Indonesian Deputy Foreign Minister Arief Havas Oegroseno said at a March 20 dialogue hosted by the NGO Kaoem Telapak in Jakarta.

One key issue is ambiguity in the EUDR’s due diligence requirements. Arief pointed to Article 9 of the regulation, which requires “adequately conclusive and verifiable information” to demonstrate that a product is deforestation-free. He said the term “adequately conclusive” is vague and could lead to arbitrary enforcement, creating uncertainty for operators.

Another sticking point is the requirement for operators to stay informed about various international regulations, which Arief said adds unnecessary complexity. Article 10 of the EUDR states that operators must be aware of sanctions in place by the U.N. Security Council and EU Council, and consider conclusions from EU Commission expert group meetings related to the EUDR.

These expectations are unrealistic, especially for smallholders who lack the resources to monitor international policy developments in real time, Arief said.

“Can we do that [monitor U.N. sanctions]? I certainly can’t, because I don’t have time to follow U.N.-level meetings,” he said. “Can farmers do it? Of course not.”

A third concern involves data security stemming from the EUDR’s geotagging requirement. The regulation mandates that operators provide geolocation data to prove their crops weren’t grown on deforested land. Arief noted a legal contradiction: The EU’s own data privacy laws restrict geolocation data sharing, yet the EUDR demands it from exporters in the Global South.

Citing his own experience as Indonesia’s ambassador to Germany from 2018 to 2024, Arief recalled that just flying a drone, even in his own backyard, required registration and police approval due to strict geolocation rules. This reflects the EU’s stringent data privacy standards, he said.

Therefore, if European farmers aren’t required to share geotagging data for privacy reasons, why should Indonesian farmers be subjected to that requirement, Arief asked.

“Now, my question is: In the U.S., soybean farmers are also subject to EUDR. Do you think [U.S. President Donald] Trump would allow American farmers to hand over geotagging data to Europe?” he asked. “I don’t know. But I’ve heard they are planning to challenge EUDR at the WTO.”

While the EU’s General Data Protection Regulation (GDPR) restricts sharing of geolocation data when it can be used to identify individuals, it doesn’t explicitly prohibit geolocation data collection for supply chain transparency.

A fourth concern is the lack of clarity around the EUDR’s benchmarking system, which classifies countries by deforestation risk: low, standard or high. This classification affects the level of inspections and obligations placed on operators and member states’ authorities. High-risk countries face enhanced monitoring, while low-risk countries benefit from simplified due diligence.

Arief said it’s unclear whether this benchmarking applies at the country or commodity level.

“We don’t really understand how it works,” he said.

A fifth issue is the EU’s inconsistent implementation of past trade deals. Arief cited the FLEGT-VPA agreement, under which Indonesian timber exported to the EU must be certified legal, in return for preferential treatment for those exports.

To assess this commitment, Arief sent inquiries to 16 German governors in 2020 about FLEGT enforcement. Only three responded: two said they were unaware of the agreement, while the third acknowledged it but said they didn’t trust FLEGT.

“And some EU authorities refused to implement it, especially in Eastern Europe,” Arief said. “But FLEGT is a binding agreement for all EU members.”

Given this track record, Arief questioned how Indonesia could trust that the EUDR would be enforced fairly and consistently.

EU response

Responding to these criticisms, Sander Happaerts, the green and digital counsellor at the EU Delegation to Indonesia, acknowledged that the EUDR contains some ambiguities.

“In regards to definition, the guidance [on the EUDR] has information on some of the definition, but if you go to specific articles, you can say that some things aren’t immediately clear,” he said.

This, however, is common in EU legislation, which is intentionally broad to allow flexibility and assign responsibility to operators, he said.

Addressing the geolocation data concerns, Happaerts said there should be no privacy issues.

“The sharing of geolocation to the EU information system, that is of course one of the essential elements of EUDR. However, this should not be confused or mixed with privacy issues, or data pertaining to individual farmers, so there will be no personal data shared,” he said.

He added these concerns have already been addressed in the EUDR’s official guidance and therefore aren’t justified.

Regarding the benchmarking system, Happaerts said the results are expected in June 2025 and will be based on scientific data, including historical and current deforestation rates. He stressed the benchmarking should not be overestimated in terms of its impact.

This is because the main purpose of benchmarking is to guide competent authorities on the percentage of imports they need to inspect, while the core compliance requirements remain the same for all operators, Happaerts said.

“Nor will any products be banned from high-risk countries. So that’s not the case at all,” he said.

Happaerts added the benchmarking is also intended to help allocate EU support and resources.

“Our aim, once there’s benchmarking, is also to help countries to decrease the level of risks that they have. This is a really important point because sometimes we forget that the ultimate aim of the EUDR is to halt deforestation,” he said. “Indonesia, the EU and others have committed to halt deforestation by 2030. This is why we have the EUDR.”

Despite Arief’s concerns, Happaerts said EU-Indonesia cooperation on the EUDR has been progressing well. Indonesia and Malaysia are the only two countries that have set up a joint task force with the EU to support EUDR implementation.

However, he acknowledged that communication has stalled over discrepancies in forest and commodity supply chain data. In 2024, Indonesia discovered that its forest maps and data differed from those used by the EU as a reference for EUDR implementation – largely due to differing definitions of “forest” between the two parties.

While efforts have been made to reconcile these differences, talks have since slowed, Happaerts said.

“We have colleagues in the EU that are very willing to discuss with Indonesia, but unfortunately from the Indonesian side, they’re no longer replying to them,” he said. “So I’m here with open hands to say that we really want to continue working with Indonesia on the questions that exist about the map, but of course we need to hear some of the replies.”

Due to concerns over the readiness of producer countries, the EU delayed the EUDR’s implementation from December 2024 to December 2025.

Happaerts called on all stakeholders to make full use of the additional time to prepare for the regulation. He said the EU would not abandon its trading partners, and will instead increase cooperation to help operators and countries halt deforestation and comply with the EUDR.

“We are here to stay with you,” he added.

Banner image: Palm oil farmers in Central Kalimantan. Image by Rendy Tisna/Mongabay Indonesia.

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