Turning Risk to Opportunity: Sustainable Expert Insights on Indonesia's Path to EUDR Compliance

JAKARTA, Indonesia - March 18, 2025 - PRLog -- The evolving European Union Deforestation-Free Regulation (EUDR) is reshaping global trade by placing sustainability at the core of market access. Designed to prevent deforestation-linked products from entering the EU, its implementation faces delays and political discussions. These evolving dynamics present both challenges and opportunities for commodity-producing nations like Indonesia.

To address these issues, BeyondTraceability Talks, hosted by Koltiva, gathered industry stakeholders to discuss EUDR compliance. The discussion covered regulatory complexities, economic impacts on Indonesian exports, and sustainability strategies.

The recent 12-month EUDR enforcement delay reflects its implementation challenges. While this postponement allows flexibility, it also raises concerns about its trade impact. Indonesia must invest in traceability, capacity building, and certification—posing significant challenges, particularly for smallholder producers.

"The current regulatory framework presents significant challenges for smallholders," says Ainu Rofiq. "Without proper support, these producers could be left behind, unable to meet compliance requirements and ultimately excluded from global trade."

With EUDR set for full enforcement by 2026, collaboration between governments, industry leaders, and technology providers is critical.

Businesses must shift from reactive to proactive supply chain management by enhancing technology-driven traceability. Rofiq warns that companies failing to monitor sourcing risk losing market access, facing legal consequences, and harming their brand. Koltiva's KoltiTrace platform offers real-time insights into product origins, supplier compliance, and sustainability risks, enabling businesses to conduct risk assessments and meet evolving regulations.

While digital solutions are important, Rofiq highlights that compliance cannot be attained solely through data collection. The on-ground team collaborates directly with producers, cooperatives, and suppliers to verify sustainability practices in the field. These experts perform field audits, offer training on sustainable farming techniques, and assist farmers in meeting regulatory standards.

"Relying on digital reports alone is not enough," says Rofiq. "Sustainability claims must be verified in the field to ensure credibility. That's why the hybrid approach—combining technology with hands-on field engagement— is the most effective way to build trust and ensures real impact."

Beyond compliance, empowering smallholder producers with the necessary knowledge and tools is crucial for ensuring their competitiveness in global markets."Education is critical in ensuring that smallholders are not excluded from global supply chains," says Rofiq.

As the EUDR debate continues, businesses must act now to future-proof their supply chains. Companies that enhance traceability, verification, and smallholder inclusion will meet compliance while leading in ethical trade. "With the right combination of technology, field engagement, and capacity building, we can turn compliance into a competitive advantage," concludes Rofiq.

Watch the discussion at https://www.koltiva.com/beyond-traceability-talks-vol2