EUDR postponement is a wake-up call for Indonesia’s commodity governance

The European Union's decision to delay the enforcement of the Deforestation-Free Regulation (EUDR) by 12 months has prompted discussions about Indonesia's readiness to comply, given its governance challenges in commodity sectors like palm oil. The delay, announced on October 2, provides Indonesia an opportunity to reform its forest management and improve transparency in geospatial data sharing. The EUDR requires traceability and deforestation-free sourcing, which Indonesia struggles with, especially as the National Dashboard is deemed insufficient by the EU. While Indonesia resists these requirements, other countries like Malaysia have complied, and major corporations support the EUDR's immediate implementation. This situation underscores the need for Indonesia to embrace reforms to safeguard its economic and environmental future.

The European Union’s recent decision to propose a 12-month delay to the enforcement of the Deforestation-Free Regulation (EUDR) has sparked new conversations, especially for nations like Indonesia. The postponement, officially announced on October 2, comes in response to concerns raised by global partners, including discussions at the United Nations General Assembly in New York. The key question now is whether this delay offers an opportunity for Indonesia to finally address long-standing governance issues in its commodity sectors — issues that have left the country vulnerable to such external regulatory shocks. The Commission also stated that all technical implementation tools and equipment are ready, and it hopes that the additional time will serve as a phased period to ensure proper and effective implementation. Based on this, all possibilities remain open, as the decision now rests with the members of the European Parliament and Council. Indonesia’s response to the EUDR has so ...