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26    FOCUS                                                                        JAN/FEB 2025 FDM ASIA | www.fdmasia.com






         www.pexels.com                                      Airlangga Hartarto, stated that the Joint Task Force on the
                                                             EUDR involving Indonesia, Malaysia and the EU will continue
                                                             its work where Indonesia and Malaysia will continue to fight
                                                             for recognition of their respective sustainability standards.

                                                                Regarding traceability, he noted that Indonesia and Malaysia
                                                             have adequate mechanisms to address this issue. However,
                                                             the EU's requirement for specific location data or location
                                                             sharing will be very difficult, especially for small scale farmers
                                                             and timber operators.
                                                                In related news, the decision to delay implementation of
            The chairperson of the Indonesian Forest Entrepreneurs   the EUDR has drawn criticism from environmental groups such
          Association (APHI) Prof. Indroyono Soesilo is reported as   as the Indonesian Civil Society Coalition (Koalisi Masyarakat
          saying integration of the timber utilisation with non-timber   Sipil Indonesia) and the Indonesian Forum for the Environment

          forest products and environmental services is at the core of   (Wahana Lingkungan Hidup Indonesia).
          the multi-forestry business approach and address achievement   The Forest and Garden Campaign Manager of the Indonesian
          of the Asta Cita Mission 2 and 5.                  Forum for the Environment, Uli Arta Siagian, also regretted
                                                             the delay in the implementation of the EUDR by the European
          Reducing dependence on exports to the US           Union Parliament.
          The  Indonesian  Furniture  and  Crafts  Industry  Association
          (HIMKI) is preparing a strategy to address any impact of   Forests offer potential for bioeconomy

          additional US import tariffs being proposed by the incoming   The National Development Planning Agency (Bappenas) has
          US administration as these will impact Indonesian furniture   said Indonesia possesses significant bioeconomic potential
          and craft exports.                                 which will serve as a foundation for economic transformation
            Abdul Sobur, Chairman of the HIMKI, noted that the planned   by 2045.
          increase in tariffs would undermine the competitiveness of   With 62 percent of Indonesia's land area covered by forests
          Indonesian furniture products in the US market. The HIMKI   the forestry sector is crucial for developing a sustainable bio-
          is focused on diversifying its export markets targeting India,   based economy. The Multi Forestry Business Policy aims to
          China and countries in the Middle East.            be an innovative solution that supports Indonesia's economic
            To address the effects of a rise in US import tariffs   transformation.

          HIMKI has been actively communicating with the Indonesian   Vivi Yulaswati, Deputy for Maritime Affairs and Natural
          government and proposed measures including negotiating a   Resources at the Ministry of National Development Planning/
          trade agreement with the US for preferential tariffs.   National Development Planning Agency (PPN/Bappenas) stated
            Other options include  offering  incentives to  exporters   an initiative is necessary to develop bioeconomic concepts
          through reduced import taxes on raw materials and providing   and principles that can be adopted at the national level.
          support for upgrading production technology.          As part of the government's commitment, the bioeconomy
                                                             concept has been incorporated into the National Long-Term

          Indonesia, Malaysia efforts to address EUDR        Development Plan (RPJPN) 2025-2045 and the National
          Indonesia's Coordinating Minister for Economic Affairs,   Medium-Term Development Plan (RPJMN) 2025-2029.
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