Indonesian Palm Oil EU Exports Rise Ahead of EUDR Deadline
Indonesian palm oil exports to the EU have increased due to currency fluctuations, but future growth faces challenges from the EU Deforestation Regulation (EUDR). Industry leaders warn that strict traceability requirements may hinder smallholders who lack formal mapping systems.
Why it matters
The tension between environmental regulations and trade agreements significantly impacts the livelihoods of small-scale farmers in developing nations.
A key driver behind this growth is the weakening rupiah against the euro. In the first quarter of 2025, the euro traded at around IDR 17,000, whereas it surged to a range of IDR 19,500 to IDR 20,000 in the first quarter of 2026, representing a roughly 16 percent depreciation for the Indonesian currency. However, exchange rates only tell part of the story. Looking at volume, shipments of palm oil to the EU rose by a strong 12.7 percent (y/y) to 1.70 million tons during the January - April 2026 period.
The report balances economic data with the regulatory challenges faced by the industry.
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