TEMPO.CO, Jakarta - The Indonesian Food and Beverage Business Association (GAPMMI) believes the country is not yet prepared to adopt the European Union Deforestation Regulation (EUDR). However, GAPMMI Chairperson Adhi S. Lukman noted that efforts to familiarize local business actors with the upcoming provisions remain ongoing.
"In my opinion, we require coordinated government action to refine domestic regulations so that we can be ready," he said when met at The Westin Jakarta on Thursday, July 2, 2026.
This EUDR policy mandates that operators, including individuals or legal entities, conduct rigorous due diligence, such as information gathering, risk assessment, and risk mitigation, before introducing products into the European market. The commodities subject to these regulations include cattle, cocoa, coffee, palm oil, rubber, soybeans, and wood, as well as their derivatives.
Exporters targeting the European market must comply with criteria regarding traceability, legality, and deforestation-free sourcing. These regulations dictate that traded goods must originate from transparent and sustainable production processes.
Adhi noted that food and beverage industry players will continue to brace themselves to preserve their edge in the global marketplace. "We must continue to prepare ourselves. Up to this point, we are getting prepared so that we will be ready," he said.
Under Regulation (EU) 2025/2650, published by the European Commission in December 2025, the implementation of the EUDR was deferred once again until the end of 2026. The deadline for large-scale operators was extended to December 30, 2026, while individuals and micro- and small enterprises have until June 30, 2027. The framework was initially slated to take effect on December 30, 2024, before being pushed to December 30, 2025, and subsequently delayed to the current 2026 and 2027 timelines.
Krisdianto, Head of the Bureau of Public Relations and Foreign Cooperation at the Ministry of Forestry, stated that the Indonesian government and the European Union had deliberated on the EUDR in Belgium on June 4, 2025, prior to the latest extension. During those talks, Jakarta raised its official objections, arguing that the EUDR was enacted unilaterally without prior consultation with producing nations and criticizing its extraterritorial overreach.
The policy is considered to potentially harm more than 8 million smallholders across Indonesia, disrupt supply chains, and create new hurdles to global trade. Nevertheless, the government highlights its own robust national forest monitoring framework, which has been operational and validated through SIMONTANA (National Forest Monitoring System) since 2000.
"SIMONTANA has significantly contributed to curbing deforestation rates over the past two decades," Krisdianto said on Wednesday, June 11, 2025.
Read: Indonesia Readies Incentives for Global Financial Center
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