Indonesia criticizes EU over inflexibility on deforestation regulation

Spat threatens broader bilateral ties, diplomats say

20241210 Palm oil Jambi

A palm oil collection site in Sumatra's Jambi province, Indonesia: Officials and producers in the province say most smallholder producers will be unable to become compliant with the European Union's new deforestation regulation. © Getty Images

JOSEPH RACHMAN, Contributing writer

JAKARTA -- Indonesia has reacted angrily to the European Union's decision not to offer further concessions on its deforestation regulation (EUDR) that affects suppliers of goods produced in former forests, such as palm oil.

Diplomats and analysts have warned the spat risks straining the broader bilateral relationship between Brussels and Jakarta because there is little chance hundreds of thousands of Indonesian smallholder producers will be able to comply with the new rules in time.

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