GAPKI Welcomes Indonesia-EU Trade Pact, Calls for Smallholder Inclusion

The agreement is also an opportunity for the EU to address its measures on Indonesian biofuels and ensure its deforestation rules don't penalise smallholders.

JAKARTA , INDONESIA, September 23, 2025 /EINPresswire.com/ -- On the signing of the IEUCEPA agreement in Bali, Indonesia, Eddy Martono, chairman of GAPKI issued the following statement:

“The Indonesian Palm Oil Association (GAPKI) welcomes the conclusion of the IEUCEPA negotiations, marking a significant milestone in Indonesia-EU relations. We particularly commend the Indonesian negotiating team and the achievement of zero tariffs for palm oil exports to the EU, which recognizes palm oil's strategic importance to Indonesia and will create more competitive conditions for our producers, benefiting millions of Indonesians whose livelihoods depend on this sector.

“The IEUCEPA also provides a crucial opportunity for the EU to address its measures on Indonesian biofuels and bring them into compliance with WTO decisions.

“We urge the EU to use this partnership to ensure that trade policies are based on scientific evidence and international trade law, resolving the sector’s longstanding concerns constructively.

“The agreement also presents an important platform to address smallholder farmers' concerns regarding the EU Deforestation Regulation (EUDR). With Indonesia’s 2.7 million smallholders representing 40% of Indonesia's palm oil production, it is essential that EUDR implementation considers their capacity constraints and provides appropriate support mechanisms.

“If the EUDR continues to exclude smallholders from European supply chains, zero tariffs will be meaningless for Indonesia’s millions of farmers across palm oil, cocoa, coffee and rubber.

“We call upon both parties to develop practical solutions that enable smallholder compliance while maintaining their market access and livelihoods.

“GAPKI remains committed to sustainable palm oil production and looks forward to working within the IEUCEPA framework to demonstrate that economic development and environmental concerns can advance together.”

Fadhil Hasan
GAPKI
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