EU Uses Forest Code for CEPA Negotiations

A research institute in the United States, Chain Reaction Research, has concluded that there will be a reduction in deforestation for opening oil palm plantations in Malaysia and Indonesia in 2021. LPEM UI found similar data. Para 2019-2020 there was a reduction in the rate of deforestation by up to 75 percent. While in 2021-2022 there is a decrease in the deforestation rate of 8.4 percent.


The European Union’s forest regulations have the potential to be used as a bargaining chip in EU-Indonesia trade negotiations. Jakarta needs to be careful about requests related to nickel, bauxite, as well as government goods and services procurement projects.

The Institute for Economic and Social Research (LPEM) Faculty of Economics and Business (FEB) University of Indonesia concluded this in a report on Tuesday (4/7/2023). The LPEM FEB UI team highlighted the EU anti-deforestation law (EUDR) that went into effect last June. “The EUDR setting uses benchmarks determined by the EU itself, not using existing indicators of environmental achievement,” the report stated.

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