- Indonesia is spearheading efforts to galvanize an ASEAN-wide response to the EU Deforestation Regulation (EUDR)
- The implementation of EUDR has been postponed until 2026, giving ASEAN countries time to strategize
- ASEAN sustainability agenda gains momentum with calls to shape regional rules better
Indonesia is taking the initiative to unite ASEAN member countries against what it perceives as broader discriminatory global sustainability policies, but particularly the European Union’s Deforestation Regulation (EUDR), even with the regulation’s delay.
This development comes as ASEAN grapples with the potential economic impacts of such regulations on its key export commodities.
At the 24th ASEAN Economic Community Council (AECC) Ministerial Meeting held in Vientiane, Laos, on October 7, 2024, Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, made a case for ASEAN unity against the EUDR.
“I invite all ASEAN member countries to be united and pro-active in responding in a measurable manner to discriminatory world sustainability policies such as the EUDR, because they have a negative impact on the economy and the lives of many people,” Airlangga stated during his intervention at the meeting.
The EUDR, which was originally scheduled to take effect at the end of December 2024, has now been postponed until 2026. This delay provides a crucial window for ASEAN countries to develop a cohesive strategy and strengthen their position in discussions with the EU.
Indonesia has been raising its objections to the EUDR among EU officials since the law was first floated.
Although Indonesia and Malaysia have been part of the Joint Task Force with the European Union to share views and proposals, Indonesia is now seeking a broader, bloc-wide approach.
Other ASEAN member Thailand has been a part of Indonesia’s ‘Like Minded Countries’ initiative that expressed opposition towards the EUDR.
Singapore has also objected to the EUDR, which may be surprising given its lack of both forests and agricultural products. However, as a trading hub for palm oil, cocoa, coffee, timber, rubber and other commodities, Singapore is acutely aware that the regulation still has the potential to disrupt ASEAN-EU trade.
At the WTO last month, Singapore stated:
“We … respectfully urge the EU to consider adopting less onerous approaches, in order to reduce the compliance costs for the industry, and ensure that the measures imposed are not more trade-restrictive than necessary.”
APEC Secretariat chief Dr Rebecca St Maria also noted last week that the EU’s rulemaking can have a negative impact on the bloc as a whole. At a forum last week in Jakarta, she stated:
“The EU is very active in rule-making. Because of that, we get subjected to those rules, whether we like it or not. We are [] subject to the recent anti-deforestation policy because we are palm oil exporters …”
She suggested that ASEAN needs to take a more proactive role on shaping rules for the region, including for sustainability, as part of its economic integration.
“ASEAN economic integration is when we ensure that our voice is heard not just at the international organizations, but also in rule-making: how do we shape the rules of the WTO?
“Be it digital economy, privacy rules, sustainability or just energy transition initiatives — these are all aspects that we can take … and shape it as ASEAN rules. How does it benefit ASEAN?”
Coordinating Minister Airlangga also emphasized the need for joint steps from ASEAN to strengthen its strategic position. He called for increased dialogue with key ASEAN partners and a more pragmatic approach to implementing the region’s sustainability policy agenda.
Picture by Gunawan Kartapranata (Picture license info)