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largest group, encompassing 441 HS code forest products. to the EU after a bilateral dialogue in Brussels on 4 June.
The Minister of Trade, Budi Santoso, emphasised that Key areas of concern include the legal basis and
most imported forest products such as logs, plywood and methodology for the EUDR's risk classification, the recognition
wooden crates serve as raw materials for industry making of Indonesia's national legality system and potential conflicts

this deregulation crucial. with World Trade Organization (WTO) rules.
While imported forest products no longer require Import Indonesia has also highlighted the significant administrative
Approval (PI) from the Ministry of Forestry importers still need burdens the regulation could place on smallholders particularly
to submit an import declaration. concerning digital traceability and geolocation requirements.
The Minister of Trade, Budi Santoso, explained that the Gardera stressed that over 90 percent of Indonesia's
deregulation was necessary to support industrial demand coffee and cocoa producers are smallholders. He is reported
while reducing pressure on domestic forests. as saying the EUDR's demand for separating production from
By lifting restrictions and prohibitions the government aims forests might be incompatible with Indonesia’s sustainable
to facilitate imports of raw materials while ensuring that legal agroforestry practices, especially in coffee and cocoa cultivation.

traceability of the wood is maintained through declarations Gardera cited examples, such as Perhutani's coffee
verified by the Ministry of Forestry. plantations in Java which apply sustainable agroforestry that
does not harm forest ecosystems, arguing that a blanket
SVLK relaxation not under review application of the EUDR might not be feasible for all crops.
The deregulation of forest product imports has sparked
renewed discussion about relaxing the Timber Legality and Updating the nation's forestry regulations
Sustainability Assurance Program (SVLK) for exports. On 29 June 2025 Indonesia's Parliamentary Commission IV

However, the Minister of Trade clarified on 30 June that the initiated discussions to update the nation's forestry regulations
SVLK, which pertains to exports, is distinct from the recently as the current Law, No. 41 of 1999, is considered insufficient
announced import deregulation and is not currently under for modern forest management challenges.
review. He also confirmed there has been no harmonisation During a Public Hearing on 25 June lawmakers, experts
between the two policies. and academics highlighted how overlapping provisions with
The Indonesian Furniture and Craft Industry Association other sectoral policies, particularly involving the Ministry of
(HIMKI) has actively advocated for SVLK review especially for Agrarian Affairs and Spatial Planning/National Land Agency
small, labour intensive businesses in the downstream sector.
HIMKI asserts that the industry supports the local economy Jooinn

and does not contribute to deforestation. With furniture exports
valued at US$2.5 billion in 2024, HIMKI aims to reach US$5
billion.

Concerns raised on impact of EUDR on smallholders
Indonesia is currently waiting for a formal response from the
European Union (EU) regarding its concerns over the EUDR. Dida

Gardera from Indonesia’s Coordinating Ministry for Economic
Affairs confirmed that Indonesia submitted written questions