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CIFOR-ICRAF Faisal, the policy acts as a non-tariff barrier such that the
According to CORE Indonesia Executive Director, Mohammad

government should adopt a strategic diplomatic approach to
safeguard national export interests and prevent disruptions to
export revenues.
Faisal also highlighted that the Indonesia/European Union

Comprehensive Economic Partnership Agreement (IEU-CEPA)
could be leveraged to address these challenges and support
exporters in meeting EUDR requirements, particularly in supply
chain traceability.
He stressed the need for mutual cooperation, including
To strengthen coordination, Indonesia proposed placing a technical assistance from the European Union to help developing
permanent representative at AFoCO headquarters and invited countries comply with sustainability standards.
the organisation to support the management of 1.4 million At the same time, the EUDR presents an opportunity
hectares of Indigenous Forests, as well as improve early-stage for Indonesia to improve plantation governance by focusing

funding access for social forestry communities. on sustainable practices and increasing productivity through
intensification rather than land expansion, ensuring long-term
Global furniture hub coming to Central Java export competitiveness.
The domestic media has reported a global furniture company Center of Reform on Economics (CORE) focuses on
is building a factory in the Kendal Special Economic Zone research and consulting in the fields of economics, industry,
(SEZ), Central Java. trade, regional development and public policy.
The Kendal SEZ’s industrial facilities and business-friendly

environment were key factors in the company’s decision to INDIA
invest in the project which spans around 195,000 square metres. Duty-free access for New Zealand softwood
Once operational, the factory will produce a range of It has been suggested that Duty-Free access for New
furniture products targeting markets in North America, Europe Zealand softwood under the recently signed FTA may drive
and Southeast Asia as well as domestic Indonesian demand. down prices, raising questions about long-term impacts on
At full capacity, the facility is expected to export 25,000 domestic log suppliers.
containers annually. The Indian media has hailed the Free Trade Agreement
The factory, scheduled to begin operations by the end (FTA) between New Zealand and India, signed in April 2026
of March 2027, is also projected to create approximately as this will open trade opportunities with duty-free access for

9,000 jobs, including 6,000 local positions during the initial 100 percent of India‘s exports and lower tariffs for 95 percent
production phase. of imports from New Zealand.
Mr. Agneshwar Sen, the Trade Policy Leader from Earnst
Diplomacy needed to address EUDR and Young (EY India) said “India has secured this without
Indonesia is being urged to strengthen its global diplomacy to compromising its most sensitive sectors. Dairy, edible oils,
reduce any negative impact of the European Union Deforestation sugar, spices, onions and key agricultural commodities are
Regulation (EUDR) on its export performance. explicitly excluded from India’s concession list, protecting