Lang
Indonesia's Deputy Foreign Minister, Arif Havas Oegroseno, announced that his country is working with relevant stakeholders to develop a global standard for palm oil management and trade, aimed at countering the European Union's Deforestation Regulation, which poses significant challenges for smallholder farmers in Indonesia, particularly those working in the palm oil, rubber, cocoa and coffee sectors.
Speaking at a seminar titled "Opportunities and Challenges of the Biofuel Industry" held in Jakarta on Thursday, 17 July 2025, Arif said:
"The EU has set its own standards without any alternative reference point, so we need to establish our own reference point outside the EU. We need to develop national or international standards through platforms such as the CPOPC, the BRICS group, and the Food and Agriculture Organization (FAO)."
The Indonesian initiative has gained growing support within the BRICS bloc, with member states agreeing to oppose the EU regulation and support the establishment of sustainable standards for vegetable oil trade. These standards are set to be developed on a minilateral basis, with the involvement of the Council of Palm Oil Producing Countries (CPOPC) for regional implementation and the FAO for standards at the global level.
Arif underscored Indonesia's role as one of the world's leading producers and exporters of vegetable oils, stressing that his country must act proactively to establish its own trade standards. He also noted that the first meeting with the FAO to discuss sustainable trade in vegetable oils would be held at the end of July.
He said:
"This is a strategic step. Indonesia will no longer merely engage with global rules — it will lead the effort to shape them."
It is worth noting that the EU Deforestation Regulation (EUDR) aims to curb deforestation by ensuring that products exported to the European Union are not linked to deforested or degraded land. The regulation imposes strict traceability requirements for product sourcing, which poses a significant challenge for smallholder farmers and cooperatives in Indonesia.
Arif emphasised that producers of palm oil, cocoa, rubber and coffee are the hardest hit, given their lack of the capabilities and resources needed to comply with the EU regulation's stringent traceability requirements.