Indonesia and Malaysia Challenge EU Deforestation Regulation

Indonesia and Malaysia, the world’s leading producers and exporters of crude palm oil (CPO), have openly challenged the European Union Deforestation Regulation (EUDR). They believe the implementation of this regulation could be detrimental to their economies. The bone of contention lies with the potential restrictions the EUDR could place on the import of CPO into European Union countries, which is a significant source of revenue for both nations.

Malaysian Foreign Minister Mohamad bin Hasan has been vocal about his country’s concerns. He suggested that the EUDR is enacted with ulterior motives, primarily to favor other vegetable oil commodities within the European market. This, he emphasized, is not in good faith and does not align with fair trade practices.

His Indonesian counterpart, Foreign Minister Retno Marsudi, echoed these sentiments. She conveyed that both nations had made their shared concerns clear during the 24th ASEAN-EU Ministerial Meeting held in Brussels. The unified stand of these major palm oil-exporting countries reflects their determination to protect their economic interests.

Musdhalifah Machmud, a representative from the Coordinating Ministry for Economic Affairs in Indonesia, highlighted that the government is looking to the Ad Hoc Joint Task Force (JTF) on EUDR for a concrete solution. One such proposed solution is a delay in the regulation’s implementation. This, they hope, will provide a buffer for smallholder plantations and mitigate the potential economic fallout.

The united front presented by Indonesia and Malaysia was further solidified during the 2nd meeting of the Ad Hoc JTF on EUDR held in Putrajaya, Malaysia. In a significant move, Indonesia requested a delay in the implementation of the EUDR. This request underscores the earnest efforts of both countries to safeguard the interests of their respective economies, particularly the smallholder plantations that heavily rely on CPO exports.

Tags: Crude palm oil, European Union, Malaysia, Market, restrictions, CPO, EUDR, European Union Deforestation Regulation, импорт, Indonesia, Vegetable Oil