EU Deforestation Rules May Hit Indonesia's Commodity Exports

Earlier this week, the European Union (EU) enforced a deforestation law, which is believed to pose a further threat to Indonesia's access to the market for its export commodities. This policy comes at a time when Indonesia is already involved in trade disputes with the EU over nickel and crude palm oil (CPO).

Deputy Trade Minister Jerry Sambuaga said the Indonesian government would persistently urge the EU to avoid discriminatory practices when implementing this regulation. The government seeks fairness in the enforcement of the Deforestation Law, ensuring that Indonesia retains the right to export its high-quality commodities to the European market.

"In my capacity as the head of the Indonesian delegation to the EU in 2020 regarding palm oil, we still have ongoing dispute settlements with the EU concerning CPO and nickel. We will navigate through these processes and assess the outcomes. Nonetheless, our main message is that discrimination should be avoided," Jerry said at the Trade Ministry office on Tuesday.