EU's Anti-Deforestation Regulation Threatens Indonesia's Exports

European Parliament has passed a new law preventing the import of goods linked to deforestation. Approved on Dec 6, the regulation may affect soybean, beef, crude palm oil (CPO), wood, cocoa, coffee, leather, chocolate, furniture, rubber, and charcoal trades. It requires exporters to make a due diligence statement and prove they do not benefit from or participate in deforestation.

If proven guilty, exporters and those involved in the product supply chain can be fined. "I hope that this innovative regulation will give impetus to the protection of forests around the globe," European Parliament's lead negotiator Christophe Hansen said, as quoted by Reuters.

Coordinating Economic Ministry's deputy for food and agribusiness Musdhalifah Machmud argued that the restriction would hit Indonesian farmers hard. "We consider the due diligence is unfavorable because it targets our commodities, from wood, coffee, palm oil, to cocoa," he said.