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GAPKI: Indonesian palm companies ready for EUDR, but smallholder land legality is the hurdle
At the IPOC 2026 press conference in Jakarta on October 9, GAPKI chairman Eddy Martono said Indonesian palm companies are practically ready for the EU Deforestation Regulation (EUDR), with geolocation and licensing in place. The biggest challenge sits with smallholders, who still face land legality problems. EUDR requires sharing geolocation data of plantations, while Indonesian regulations bar such data from being disclosed publicly. Eddy, just back from Amsterdam meetings with the Indonesian embassy and EU importers, said European buyers also worry about EUDR implementation and want a win-win solution, since they depend on Indonesian palm oil. Indonesia has proposed a memorandum of understanding with the EU, and the IEU-CEPA trade deal — planned for 2027 — would grant zero-tariff access for 1 million tonnes of palm oil to the EU. GAPKI secretary general Hadi Sugeng warned that 2027 exports may fall to only 26.5 million tonnes (output of 56.6Mt under El Niño vs ~60Mt potential, with full-year B50 absorbing ~17.4Mt and domestic use at ~30Mt), risking Indonesia's trade balance.