TradePAG 2026 Forum Explores Strategies to Navigate EU Deforestation Regulation

Jakarta, 16 April 2026 : ERIA, in collaboration with the Trade Policy Agency (TPA) of Indonesia's Ministry of Trade and the Centre for Strategic and International Studies (CSIS) Indonesia, organised the Trade Policy Advisory Group (TradePAG) 2026 forum under the theme 'Navigating the EUDR: Challenges and Opportunities for Indonesia's Trade'. Held at the Park Hyatt Hotel Jakarta, the event brought together policymakers, researchers, international experts, and private sector representatives to discuss Indonesia's readiness and strategic responses to the European Union Deforestation Regulation (EUDR).

As one of the world's most biodiverse countries, Indonesia faces increasing global scrutiny regarding deforestation and land-use change linked to commodity production. Aligning with the EUDR is seen not only as a compliance requirement but also as an opportunity to strengthen Indonesia's commitment to global sustainability frameworks, including Nationally Determined Contributions, the Kunming-Montreal Global Biodiversity Framework, and the Sustainable Development Goals. Participants emphasised that stronger sustainability governance can enhance Indonesia's competitiveness, attract responsible investment, and improve access to environmentally conscious markets. The revised EUDR implementation schedule - 30 December 2026 for large companies and 30 June 2027 for MSMEs - provides an important window for Indonesia to strengthen its preparedness, particularly in certification and traceability systems.

The forum opened with remarks from Mr Naoto Okura, ERIA's Director-General for Research, and Mr Muhammad Suaib Sulaiman, Secretary of the Trade Policy Agency, Ministry of Trade. Both highlighted the need to develop a concrete and strategic response to the complexity of EUDR.

The first session featured Dr Maria Florencia Sarmiento (Policy Advisor, IISD), who presented on 'Harmonising Sustainability and Economic Growth: Navigating EUDR and Global Trade Policies'. She highlighted the need to balance environmental objectives with economic growth, stressing the importance of institutional readiness, traceability systems, and international co-operation. The session was moderated by Mr Dandy Rafitrandi (Researcher, CSIS Indonesia), with Dr Venkatachalam Anbumozhi (Senior Research Fellow for Innovation, ERIA) as discussant, who underscored the role of trade finance and technical support in facilitating sustainable supply chains.

The second session featured H.E. Nur Rakhman Setyoko (Deputy II Permanent Representative/Ambassador, Permanent Mission of Indonesia in Geneva), who delivered a presentation on 'EUDR Global Diplomacy: Opportunities and Challenges'. He outlined evolving global trade dynamics, including geopolitical tensions and rising protectionist measures, and elaborated on Indonesia's diplomatic engagement with the EU to ensure fair and practical implementation of the EUDR. As discussant, Dr Mohammad Faisal (Executive Director, CORE Indonesia) emphasised the importance of strengthening Indonesia's strategic positioning in global trade negotiations.

In the afternoon session, Professor Frank Jotzo (Australian National University) delivered a presentation titled 'Border Carbon Adjustments to Support Low-Carbon Industry Development: Australia's Carbon Leakage Review'. He examined how Australia integrates climate policy, industrial strategy, and trade policy, offering lessons for Indonesia in aligning decarbonisation with trade objectives. The session was moderated by Dr Yose Rizal Damuri (Executive Director, CSIS Indonesia), with Dr Risti Permani (Senior Lecturer, University of Queensland) as discussant.

The final session featured Dr Fadhil Hasan (Founder, INDEF) with a presentation on 'Ensuring Compliance and Sustainability: Indonesia's Commodity Producers in the Face of EUDR Challenges'. He highlighted the practical challenges faced by commodity producers, particularly smallholders, in meeting EUDR requirements, and emphasised the importance of certification systems such as ISPO and RSPO, alongside improved traceability mechanisms. Ms Elyse Kneller (Associate, Nishimura & Asahi Law Firm) served as discussant, emphasising the need for stronger legal frameworks and coordinated implementation.

The TradePAG forum serves as a platform for experts to provide tailored, evidence-based advice directly to the Minister of Trade. Through this dialogue, the forum aims to generate policy and strategic recommendations to support Indonesia in addressing EUDR-related challenges, particularly in strengthening data readiness, enhancing traceability systems, and promoting transparent and sustainable supply chain governance to maintain and expand market access for Indonesian exports.