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Publication 16 Oct 2025 · International

EUDR Tracker

Understanding compliance, impact, and perception across non-EU jurisdictions

2 min read

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Mapping legal challenges in European key trade partners.

The new EU Regulation on deforestation (EUDR) poses major challenges for companies within and outside the European Union: from 31 December 2025, affected products may only be imported into or traded in the EU if they comply with the strict requirements of the regulation. Violations will not only result in temporary sales bans, but also fines of at least 4% of total EU-wide turnover.

Together with LiveEO, we have platformised EUDR compliance with our joint TradeAware product, which is a one stop shop solution [hyperlink to the co-operation].

We summarise frequently asked questions with regard to key countries of export into the EU in our EUDR tracker:

  1. What is the general take of your jurisdiction on the EUDR? Is it discussed in your jurisdiction?
  2. Does your jurisdiction provide any type of guidance for compliance with EUDR? If so, which one?
  3. What are the key national laws on land use rights, environmental protection, forest-related rules (including forest management and biodiversity conservation, where directly related to wood harvesting), third parties’ rights, labour rights, tax, anti-corruption, trade and customs regulations?
  4. Which certification or other third-party verified schemes does your jurisdiction provide for EUDR compliance?
  5. Does your jurisdiction have any restrictions on providing geolocation data to the EU?
  6. Are there any known gaps or challenges in aligning national systems with EUDR requirements (e.g. data availability, legal compatibility, institutional capacity)?
  7. How does your jurisdiction address illegal deforestation and land use change? Are there penalties or enforcement mechanisms in place?
  8. Are renaturation or reforestation measures monitored and documented by the authorities? If so, which ones?
  9. What are the procedures or requirements for obtaining consent from Indigenous Peoples or local communities regarding land use, especially concerning Free, Prior and Informed Consent (FPIC)?

1. What is the general take of your jurisdiction on the EUDR? Is it discussed in your jurisdiction?

The EUDR has been intensively discussed in Brazil, given its potential impact on major export sectors (soy, beef, coffee, cocoa, wood, rubber, palm oil). The Brazilian Government, through the Ministry of Agriculture and Livestock (MAPA), the Ministry of Foreign Affairs (MRE/Itamaraty), and the Ministry of Environment and Climate Change (MMA), is actively engaging with EU counterparts and domestic stakeholders. These discussions focus on ensuring that the EUDR requirements are compatible with Brazil’s existing legal framework, particularly the Forest Code, and on avoiding duplicative or disproportionate compliance burdens.

2. Does your jurisdiction provide any type of guidance for compliance with EUDR? If so, which one?

There is no official “EUDR guidance” issued by Brazilian authorities. However, companies may rely on existing regulatory instruments that align with EUDR requirements:

  • Rural Environmental Registry (CAR) – mandatory public electronic registry of all rural properties and landholdings, created by the Forest Code (Law No. 12.651/2012). It georeferences property boundaries and environmentally protected areas (such as Permanent Preservation Areas and Legal Reserves), integrating environmental information into a single database. It is the cornerstone of Brazil’s land-use governance framework, serving multiple purposes: monitoring and controlling deforestation, supporting environmental and economic planning, and enabling enforcement of restoration obligations.
  • National System for Rural Environmental Registry (SICAR) – federal platform managed by MMA, integrating CAR data.
  • Animal Transit Guides (GTA) and SISBOV – certification and traceability systems for bovine cattle managed by MAPA.
  • Satellite monitoring by INPE (National Institute for Space Research):
    • PRODES (Amazon Deforestation Monitoring Program): provides annual, consolidated deforestation rates in the Amazon biome, enabling long-term tracking of forest loss and serving as an official indicator of deforestation trends.
    • DETER (Real-Time Deforestation Detection System): issues frequent (near-daily) alerts of changes in forest cover, allowing rapid response and prioritization of enforcement actions by environmental authorities.

3. What are the key national laws on land use rights, environmental protection, forest-related rules (including forest management and biodiversity conservation, where directly related to wood harvesting), third parties’ rights, labour rights, tax, anti-corruption, trade and customs regulations?

Land Use and Environmental Protection

  • Federal Constitution (Art. 225): establishes the right to an ecologically balanced environment.
  • Forest Code (Law No. 12.651/2012): provides for Permanent Preservation Areas (APPs), Legal Reserves, CAR, and obligations to restore degraded areas.
  • Law No. 6.938/1981 (National Environmental Policy) and Law No. 9.605/1998 (Environmental Crimes Act): administrative, civil, and criminal liability for environmental infractions.
  • Law No. 11.284/2006 (Public Forest Management): rules for concessions and sustainable forest exploitation.

Third Parties’ and Community Rights

  • Federal Constitution (Arts. 231–232): recognition of Indigenous Peoples’ rights over traditionally occupied lands.
  • ILO Convention No. 169, ratified by Brazil (Decree No. 5.051/2004): requires Free, Prior and Informed Consent (FPIC) in decisions affecting Indigenous Peoples and traditional communities.

Labour Rights

  • Federal Constitution (Art. 7) and Consolidation of Labour Laws (CLT): core labour rights.
  • Prohibition of child labour (except apprenticeships from age 14) and forced labour (subject to blacklisting under the “Lista Suja”).

Taxation

  • National Tax Code (Law No. 5.172/1966).
  • Sector-specific federal taxes (e.g. PIS, COFINS, IPI) and VAT-like state-level ICMS.
  • Ongoing Tax Reform – Brazil is in the process of approving a comprehensive tax reform (Constitutional Amendment Bill), aimed at replacing PIS, COFINS, and IPI with a federal VAT (CBS) and merging ICMS and ISS into a subnational VAT (IBS). Once implemented, the reform is expected to simplify the tax system, reduce cumulative effects, and align Brazil more closely with international VAT standards, with potential impacts on supply chains and compliance costs for multinational operators.

Anti-Corruption

  • Clean Companies Act (Law No. 12.846/2013): strict liability of legal entities for corruption acts, including extraterritorial application.
  • Brazilian Penal Code: corruption crimes.

Trade and Customs

  • Customs Code (Decree No. 6.759/2009) and SISCOMEX regulations: govern import/export operations, documentation, and customs compliance.

4. Which certification or other third-party verified schemes does your jurisdiction provide for EUDR compliance?

Brazil does not maintain a national certification scheme formally recognized as sufficient to demonstrate compliance with the EUDR. Nevertheless, several voluntary and internationally recognized certification systems are widely applied in Brazil and may be used as supporting evidence in corporate due diligence processes. The Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) are relevant in the forestry and wood sector. In the agricultural sector, the Round Table on Responsible Soy (RTRS) provides sustainability criteria for soy production, while the Rainforest Alliance has consolidated certification schemes covering coffee and cocoa supply chains. In addition, Brazil’s Agricultural Research Corporation (Embrapa) has developed the “Carne Carbono Neutro” initiative, a pilot program for beef traceability and carbon-neutral certification, which may contribute to risk mitigation in the livestock sector.

5. Does your jurisdiction have any restrictions on providing geolocation data to the EU?

Brazilian law does not establish any specific prohibition on the transmission of geolocation data to foreign authorities or institutions, including those of the European Union. However, such data may fall within the scope of personal data when it can be directly or indirectly linked to an individual. In this case, the processing and international transfer of geolocation information is subject to the General Data Protection Law (Law No. 13.709/2018 – LGPD) and oversight by the National Data Protection Authority (ANPD).

Under the LGPD, cross-border data transfers are permitted when necessary for the execution of public policies, for compliance with international legal obligations, or when supported by specific legal bases such as the necessity to fulfill regulatory requirements. Accordingly, while no barrier exists in principle to the sharing of geolocation data for EUDR compliance purposes, operators must ensure that transfers are structured in accordance with the LGPD’s safeguards on legality, necessity, and proportionality, including transparency in relation to data subjects where applicable.

6. Are there any known gaps or challenges in aligning national systems with EUDR requirements (e.g. data availability, legal compatibility, institutional capacity)?

Brazil faces several challenges in fully aligning with the EUDR. The coexistence of multiple registries and databases, including CAR, GTA, SISBOV and IBAMA systems, results in fragmentation and weak interoperability. Although satellite monitoring tools provide reliable data at scale, independent verification and the effective transformation of alerts into enforcement remain limited. The overlapping of federal and state-level rules further increases legal complexity, while persistent tensions between environmental regulation and agribusiness interests create uncertainty. Enforcement agencies such as IBAMA, ICMBio and state secretariats also operate under resource and staffing constraints, which undermine the consistency and speed of implementation.

7. How does your jurisdiction address illegal deforestation and land use change? Are there penalties or enforcement mechanisms in place?

Brazil has a comprehensive legal and institutional framework to address illegal deforestation and unauthorized land use changes. The cornerstone is the Forest Code (Law No. 12.651/2012), which establishes conservation obligations such as maintaining Legal Reserves and Permanent Preservation Areas, while the Environmental Crimes Act (Law No. 9.605/1998) provides for administrative, civil, and criminal liability in cases of environmental infractions. Enforcement is primarily carried out by the federal environmental agency (IBAMA), by state-level environmental authorities, and by the Federal and State Public Prosecutors’ Offices (MPF and MPEs), which have broad investigatory and prosecutorial powers.

8. Are renaturation or reforestation measures monitored and documented by the authorities? If so, which ones?

Brazilian law imposes clear obligations on landowners to restore and maintain native vegetation in environmentally sensitive areas. Under the Forest Code (Law No. 12.651/2012), degraded Permanent Preservation Areas (APPs) and Legal Reserves must be restored or reforested, either through natural regeneration, assisted regeneration, or planting of native species. To operationalize this framework, the Environmental Regularization Program (PRA) requires landowners and holders of rural properties to present restoration plans and implement them within specific timelines, as a condition for legalizing their environmental status. At the federal level, the National Plan for Native Vegetation Recovery (PLANAVEG), established by Decree No. 8.972/2017, defines strategic goals for the recovery of millions of hectares of native vegetation, aiming to strengthen biodiversity, water security, and climate resilience. Brazil makes use of satellite-based monitoring systems, including INPE’s PRODES and DETER programs, as well as independent initiatives such as MapBiomas, in combination with georeferenced data from the Rural Environmental Registry (CAR).

9. What are the procedures or requirements for obtaining consent from Indigenous Peoples or local communities regarding land use, especially concerning Free, Prior and Informed Consent (FPIC)?

Brazil has ratified the International Labour Organization’s Convention No. 169 on Indigenous and Tribal Peoples, incorporated into domestic law by Decree No. 5.051/2004. As a result, projects or activities that may directly affect Indigenous Peoples or traditional communities are subject to the principle of Free, Prior and Informed Consent (FPIC). This requirement applies in a wide range of contexts, including land-use changes, infrastructure projects, concessions for natural resource exploitation, and other economic activities that could impact the territories, livelihoods, or cultural integrity of Indigenous or traditional populations. The obligation to conduct FPIC processes is not merely political or consultative; it is legally enforceable in Brazil.

1. What is the general take of your jurisdiction on the EUDR? Is it discussed in your jurisdiction?

Up to now, there is no official response or discussion on the national government level in China. The Ministry of Commerce of the PRC has reposed news regarding the release of the EUDR. However, a few provincial Departments of Commerce have provided brief introductions about its potential impacts on Chinese enterprises on their information platforms.

There is an online Q&A published by the Ministry of Natural Resources (the “MNR”) in 2024, where an enterprise tried to seek a clear answer from the MNR regarding the legal compliance requirements in the context of the EUDR. The MNR did NOT directly address the feasibility of transferring geographic information abroad or address requirements with regard to EUDR; instead, it only provided the general standards of state secrets without directly confirming if the coordinates of forest sites fall within the scope of state secrets or providing detailed standards.

Certain industry associations like the China Rubber Industry Association have organized meetings on the EUDR. Some chambers of commerce and councils for the promotion of international trade have published pieces of advice regarding the relevant requirements and risks associated with the EUDR.

2. Does your jurisdiction provide any type of guidance for compliance with EUDR? If so, which one?

Up to now, there is no official guidance for compliance with EUDR in China.

3. What are the key national laws on land use rights, environmental protection, forest-related rules (including forest management and biodiversity conservation, where directly related to wood harvesting), third parties’ rights, labour rights, tax, anti-corruption, trade and customs regulations?

Land use rights

  • The PRC Civil Code contains civil law provisions on the ownership of urban land, rural land and suburban land, as well as provisions under the Usufruct Section concerning the establishment or assignment of land contracting and management rights, easements and the right to use construction land.
  • The PRC Land Administration Law strengthens land administration, protects and develops land resources, makes proper use of land, and effectively protects cultivated land. It defines land ownership, categorizes land use purposes, and regulates the requisition of collective land and the transfer of land use rights.
  • The PRC Law on Land Contract in Rural Areas stipulates that rural households of collective economic organizations may obtain rural collectively owned land through household contracting. It explicitly restricts the non-agricultural use of contracted land to protect peasants’ long-term and stable rural land use rights.
  • The PRC Provisional Regulations for the Grant and Assignment of the Right to Use State Land in Urban Areas regulate matters regarding the granting, assignment, leasing, mortgage, and termination of the right to use state-owned land in urban areas, to standardize the development, utilization, and trading of urban state-owned land.

Environmental protection

  • The PRC Civil Code stipulates the fundamental principles for environmental protection and clarifies that civil subjects who pollute the environment or damage ecosystems shall bear corresponding tort liability.
  • The PRC Environmental Protection Law specifies the supervision obligations of relevant entities and sets out penalties for enterprises, institutions and other manufacturing operators  that pollute the environment.
  • The PRC Soil Pollution Prevention and Control Law regulates the planning and monitoring of soil pollution prevention and control work, which cover pre-pollution prevention and protection of soil as well as post-pollution risk control and remediation, sets out penalties for individuals and entities that pollute soil.

Forest legislation (including forest management and biodiversity conservation, where directly related to wood harvesting)

  • The PRC Forest Law stipulates that forest resources are owned by the state or collectives, establishes a strict logging permit system to control wood harvesting and classifies forests into public welfare and commercial forests for differentiated protection.
  • The PRC Implementation Provisions specify the rules for forest protection, impose restrictions on forest logging and set out penalties for destroying the forest resources.
  • The PRC Regulations on Conversion of Farmland to Forest regulate the work of converting farmland to forest to improve ecological environment and protect farmland resources.

Third parties’ rights

  • The PRC Civil Code provides for rights of neighbouring relations, lease and tenancy rights, usufruct rights, and similar interests.

Labour rights

  • The PRC Constitution enshrines the fundamental rights of citizens to work and clarifies that workers have the right to rest.
  • The PRC Labour Law defines the basic framework of labour relations and limits regular working hours.
  • The PRC Labour Contract Law focuses on standardizing the conclusion, performance, modification, termination and dissolution of labour contracts.
  • The PRC Social Security Law establishes a comprehensive social insurance system including endowment insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance.
  • The PRC Trade Union Law stipulates that trade unions represent and safeguard the legitimate rights and interests of workers.
  • The PRC Employment Promotion Law provides special employment support for key groups such as people with disabilities and laid-off workers, prohibits employment discrimination in aspects such as gender, ethnicity, race, religious belief, disability and age.

Tax legislation

  • The PRC Corporate Income Tax Law governs the taxation of income and profits generated by domestic/foreign-invested enterprises in China.
  • The PRC Individual Income Tax Law governs the taxation of income and profits generated by natural persons.
  • The PRC Value-added Tax Law (to be effective on 1 January 2026) manages VAT on goods sales, services, imports and clarifies exemptions.
  • The PRC Deed Tax Law levies tax on land and housing ownership acquisition, defining taxpayers, tax basis, rate range, and exemptions.
  • The PRC Environmental Protection Tax Law taxes enterprises discharging pollutants.
  • The PRC Farmland Occupation Tax taxes non-agricultural use of cultivated land such as garden, forest, and grassland.
  • The PRC Administration Regulation of Tax Collection regulates tax collection procedures, defining taxpayers' obligations and tax authorities' powers.

Anti-corruption

  • The PRC Criminal Law prohibits active and passive bribery in both public and private sectors, including offering, promising or giving undue advantages to public officials or private enterprise staff.
  • The PRC Supervision Law focuses on supervising public officials, covering acts like bribery, dereliction of duty and power abuse.

Trade and customs regulation

  • The PRC Customs Law and Customs Inspection Regulations regulate procedures for goods, articles and means of transport entering or leaving China's customs territory.
  • The PRC Foreign Trade Law governs China's foreign trade activities including import, export and international service trade.

4. Which certification or other third-party verified schemes does your jurisdiction provide for EUDR compliance?

Currently, there is no certificate for EUDR compliance. However, China has strict law on protecting forest and restricting the felling of natural forests and unauthorized alteration of forest land use.

5. Does your jurisdiction have any restrictions on providing geolocation data to the EU?

There is no blanket prohibition under Chinese law on the transfer of geolocation data to bodies or institutions of the European Union; however, transfer of geolocation data shall comply with legal requirements on protecting state secrets, important data and personal information:

  • To provide surveying and mapping results that constitute state secrets) to foreign parties, enterprises must navigate a formal administrative approval process governed by the natural resources authority.
  • If certain geolocation data constitute important data (i.e., data of specific fields, specific groups, specific regions or with certain precision and scale, which, once leaked, tampered with or destroyed, may directly endanger national security, economic operation, social stability, public health and security) out of China, the data handler must apply for and undergo the security assessment by the CAC.
  • Transferring personal information and sensitive personal information shall be subject to security assessment or proceed by signing a standard contract with the overseas recipient or to obtain personal information protection certification from a qualified body to authorise the transfer, depending on the amount of data to be transferred.

6. Are there any known gaps or challenges in aligning national systems with EUDR requirements (e.g. data availability, legal compatibility, institutional capacity)?

As mentioned in above Question 5, there are restrictions on transferring data that constitute state secrets, important data and sensitive personal information out of China:

  • It is prohibited to transfer geographic data that fall within the Catalogue of State Secrets outside of China without the approval of competent natural resources authority. Geographic data meet certain criteria may be deemed as State secret (e.g., orthophotos with certain accuracy, or geolocation near military areas). Besides, transformation parameters between the national geodetic coordinate system (e.g., CGCS2000) and relatively independent coordinate systems (e.g., WGS-84) with an accuracy better than ±10 cm are classified as state secrets, which may make it difficult to precisely transform coordinate in China to coordinate systems used in EU.
  • It is prohibited to transfer geographic data that constitute important data outside of China without undergoing the security assessment by the CAC. Geographic information may be categorised as important data if it meets certain standards in certain sectors (e.g., geographic information reaches a certain level of precision or is not publicly available, geographic information of important sensitive areas, and other geographic information that once leaked, tampered with or destroyed, may directly endanger national security, economic operation, social stability, public health and security, such as data with spatial coordinates in resource-type data concerning rural land contracting, grain production functional zones and important agricultural product protection areas, and farmland quality).
  • If the geolocation data can be linked to the smallholders—for example, the plot-level coordinates could be tied to a person’s home address, their property ownership, or movement trajectories tracked through geolocation data, transferring such data shall be subject to the legal requirements set out in Question 5. We understand that based on the EUDR’s requirements, it is unlikely that the geographic information could be deemed as personal information or sensitive personal information, but there is possibility that some exceptional circumstances in individual cases may fall within this scope.

7. How does your jurisdiction address illegal deforestation and land use change? Are there penalties or enforcement mechanisms in place?

Monitoring and supervision are conducted by the competent forestry authorities in China, which ensure compliance with laws, prevent violations, and take necessary enforcement measures on protecting natural forest from being destroyed. The specific penalties or enforcement includes:

  • Illegal deforestation: illegal deforestation that meets the threshold for criminal prosecution shall be subject to criminal liability under the Criminal Law. For other acts of illegal deforestation, violations shall be punishable by fines, and the violators shall be ordered to replant trees or restore the affected area according to the PRC Forest Law and relevant regulations.
  • Land use change: any unauthorized alteration of forest land use without prior approval from the competent authority will be ordered to restore the land and subject to fines according to the PRC Land Administration Law. Any person who unlawfully occupies land without approval or arbitrarily converts agricultural land to construction land will be ordered to restore the land, forfeit any illegal gains, and may be fined; if such acts constitute a crime, criminal liability will be pursued according to law according to the PRC Land Administration Law.

8. Are renaturation or reforestation measures monitored and documented by the authorities? If so, which ones?

China has been carrying out large-scale reforestation projects in recent decades. To protect the achievements of the projects, county-level forestry authorities are responsible for conducting inspections in accordance with national standards. Provincial governments are responsible for conducting review of the county-level acceptance results, followed by a verification by the national forestry authorities.

Besides, there are two authorities which monitor the overall forest and environmental conditions and document information:

  • The competent forestry authority of the State Council will periodically monitor the situation of extinction and growth of forest resources and changes of forest ecological environment.
  • The environmental protection department of the State Council will formulate monitoring standards, and organise monitoring network jointly with the relevant authorities, plan the installation of the State's environmental quality monitoring stations.

9. What are the procedures or requirements for obtaining consent from Indigenous Peoples or local communities regarding land use, especially concerning Free, Prior and Informed Consent (FPIC)?

In China, the concept of Free, Prior and Informed Consent (FPIC) is currently not applicable. However, regarding land use, there are certain procedural requirements that must be followed which embodies the core elements of “prior and informed consent”. For example, according to PRC Land Administrative Law, prior to applying for land expropriation, a public notice regarding the specific expropriation plan shall be issued for at least 30 days to solicit opinions from members of the interested parties. If a majority of members deem the plan non-compliant, a hearing shall be organized, and the plan shall be revised accordingly. The transfer or lease of collectively owned operational construction land that has been registered in accordance with the law shall be conducted through a written contract and must be approved by more than two-thirds of the members present at a meeting of the collective's members or by the collective's representatives.

1. What is the general take of your jurisdiction on the EUDR? Is it discussed in your jurisdiction?

Broadly, EUDR is highly discussed and debated in Indonesia. The government, industry (especially palm oil associations), and civil society are actively engaging — often with concern from industry and some government actors that the regulation may disadvantage Indonesian exporters and smallholders unless support is provided, while civil society and parts of government see it as an opportunity to push transparency and legality. The EU’s phasing-in delay (to end-2025/2026) and ongoing bilateral talks reflect that engagement.

2. Does your jurisdiction provide any type of guidance for compliance with EUDR? If so, which one?

There is no single Indonesia-wide “EUDR law”, but the Indonesian government and sector bodies are preparing guidance and digital tools to help compliance. Examples:

  • Government initiatives to build a national digital dashboard / commodity tracker (to improve traceability for palm oil, rubber, coffee, etc.).
  • Industry bodies (e.g., GAPKI) are also issuing positions and urging the international recognition of Indonesian Sustainable Palm Oil (ISPO) certification and extra time/support for smallholders.

In short, the guidance is emerging both from the government and industry, but it is fragmented and still being developed to meet EUDR’s detailed information and geolocation needs.

3. What are the key national laws on land use rights, environmental protection, forest-related rules (including forest management and biodiversity conservation, where directly related to wood harvesting), third parties’ rights, labour rights, tax, anti-corruption, trade and customs regulations?

Main national instruments to be aware of (non-exhaustive):

Land / land-use rights:

  • Basic Agrarian Law — Law No. 5 of 1960 (regulates land rights, ownership, use and leases).

 Environment:

  • Law No. 32 of 2009 on Environmental Protection and Management (Environmental Impact Analysis (EIA), environmental permitting, pollution control).
  • Government Regulation No. 22 of 2021 on the Implementation of Environmental Protection and Management.

 Forest Related Rules:

  • Law No. 18 of 2013 on the Prevention and Eradication of Forest Destruction.
  • Law No. 41 of 1999 on Forestry (forest area status, forest management, state control).
  • Law No. 5 of 1990 on Conservation of Natural Resources and Their Ecosystems and implementing regulations.
  • Government Regulation No. 23 of 2021 on Forestry Management.
  • Constitutional Court Decision No. .35/PUU-X/2012 on the Existence of Community Customary Forests.

Labour:

  • Law No. 13 of 2003 on Manpower (employment standards — note: labour law has also been reformed through the Job Creation Act (i.e., Government Regulation in Lieu of Law No. 2 of 2022) and implementing rules).

 Trade & customs / export rules:

  • Law No. 17 of 2006 on Customs.
  • Law No. 11 of 1995 on Excise.
  • Various trade regulations and ministerial regulations govern export licences and commodity traceability; export/levy rules for palm oil are handled by trade/finance ministries and industry regulators (and are under active policy discussion).

 Anti-corruption:

  • Law No. 31 of 1999 on Corruption Eradication. Corruption Eradication Commission (KPK) enforcement framework and relevant criminal statutes are applicable to corruption offences in natural resources sector.

 General tax laws:

  • Law No. 6 of 1983 concerning General Provisions and Tax Procedures.
  • Law No. 7 of 1983 concerning Income Tax.
  • Law No. 8 of 1983 concerning Value Added Tax (VAT) and Sales Tax on Luxury Goods.
  • Law No. 12 of 1994 concerning Land and Building Tax
  • Law No. 10 of 2020 concerning Stamp Duty.

4. Which certification or other third-party verified schemes does your jurisdiction provide for EUDR compliance?

Key schemes used in practice or proposed as building blocks for EUDR compliance:

  • ISPO (Indonesian Sustainable Palm Oil): ISPO is the national mandatory certification for palm oil production, although it remains voluntary for smallholders and plantations supplying bioenergy. The scheme is recognized as a critical tool for aligning Indonesian palm oil with global sustainability objectives, including the United Nations Sustainable Development Goals (SDGs). ISPO aims to ensure that palm oil production is economically viable, environmentally responsible, and socially equitable. The system is being strengthened and expanded to cover more growers, and Indonesia is actively promoting its recognition as a compliance mechanism under the EUDR.
  • SVLK (Timber Legality Assurance System): SVLK serves as Indonesia’s timber legality verification system and is used for timber exports, linked to FLEGT/V-Legal processes. It provides primary proof that timber and timber products are legally sourced, promoting sustainable forestry practices and combating illegal logging, which has historically contributed to environmental degradation and biodiversity loss. SVLK is a key instrument for ensuring legal compliance within Indonesia’s forestry sector.
  • Voluntary Global Standards: In addition to national schemes, private and international sustainability standards are often used in parallel for specific markets. Examples include RSPO for palm oil and ISCC for bioenergy and sustainability verification. However, Indonesia emphasizes ISPO and SVLK as the primary compliance frameworks for EUDR.

Ongoing studies and government/industry initiatives are evaluating how data from ISPO and SVLK can be adapted to meet EUDR requirements. Key gaps remain, particularly regarding geolocation data and the inclusion of smallholders in traceability systems.

5. Does your jurisdiction have any restrictions on providing geolocation data to the EU?

Yes, Indonesia places restrictions on transferring geolocation data—considered personal data if it can identify individuals—outside its borders, including to the EU, under the Personal Data Protection Law (Law No. 27 of 2022). Cross-border transfers are only permitted if the recipient country has equivalent or stronger protections, the recipient provides adequate and binding safeguards, or the data subject gives explicit consent. While the EU’s GDPR is generally strong, Indonesia has not yet officially recognized any countries as “adequate,” so transfers for EUDR compliance (which often require geolocation data to prove deforestation-free supply chains) must be structured carefully, either through binding agreements with EU entities or by securing data subjects’ consent, and may also be affected by parallel national rules on data localization and sector-specific restrictions.

6. Are there any known gaps or challenges in aligning national systems with EUDR requirements (e.g. data availability, legal compatibility, institutional capacity)?

Yes, Indonesia faces several challenges in aligning its national systems with EUDR, particularly concerning data availability, legal compatibility, and institutional capacity.

  • Data Availability: A significant hurdle is the lack of comprehensive geolocation data for smallholder farms. Many smallholders have not formally registered their land plots, making it difficult to trace the origin of their produce. This issue is compounded by unclear land tenure, with overlapping claims or missing legal titles delaying or preventing certification.
  • Legal Compatibility: While Indonesia's national certification schemes like ISPO and SVLK address various EUDR requirements, they have limitations. For instance, ISPO does not require compliance with internationally protected human rights and customs-related legality requirements, which are essential under the EUDR.
  • Institutional Capacity: The implementation of the EUDR necessitates robust institutional frameworks and capacities, which are currently lacking. The absence of an operational IT system for ISPO hampers its ability to link with platforms like e-STD-B (Electronic Cultivation Registration Certificate) and SIPERIBUN (Plantation Licensing Information System), essential for transferring geolocation information to EU operators. Additionally, intermediaries such as FFB dealers/traders are not required to collect or pass on geolocation information, further complicating traceability efforts.

Addressing these challenges requires significant reforms in data management, legal frameworks, and institutional capacities to ensure compliance with the EUDR and facilitate sustainable trade practices.

7. How does your jurisdiction address illegal deforestation and land use change? Are there penalties or enforcement mechanisms in place?

In Indonesia, illegal deforestation and land-use change are addressed through a combination of legal frameworks, enforcement mechanisms, and penalties, though challenges remain in effective implementation. Key laws include Law No. 18 of 2013 on the Prevention and Eradication of Forest Destruction, which criminalizes illegal logging and land clearing with penalties of up to 10 years’ imprisonment and fines up to IDR 10 billion, and Law No. 32 of 2009 on Environmental Protection and Management, which provides administrative, civil, and criminal sanctions for environmental damage. Enforcement is carried out by agencies such as the Ministry of Environment and Forestry (KLHK), including its Law Enforcement Directorate (Gakkum KLHK), and, in some cases, the military has been involved in operations against illegal forest activities. Mechanisms include monitoring, confiscation of illegally cleared land, and prosecution, with over 437,000 hectares of land from non-compliant palm oil companies reclaimed for state management in 2025. Despite these measures, enforcement is hindered by corruption, inconsistent application of the law, and the disproportionate criminalization of smallholders and Indigenous communities, while many illegal logging cases go unpunished. Overall, Indonesia has a robust legal framework on paper, but its effectiveness is constrained by institutional, social, and governance challenges.

8. Are renaturation or reforestation measures monitored and documented by the authorities? If so, which ones?

In Indonesia, reforestation and renaturation efforts are actively monitored and documented by both governmental and non-governmental entities.

Governmental Monitoring and Documentation

  • KLHK oversees national reforestation and rehabilitation programs aimed at restoring deforested areas. They also develop reforestation initiatives through sustainable industrial timber plantations.
  • SIPASHUT System: The Business Management and Utilization of Forest Information System (SIPASHUT) is a digital platform managed by KLHK. It has been enhanced with new features to provide accurate information for forest monitoring and to support the achievement of Indonesia's Forest and Other Land Use (FOLU) Net Sink 2030 target.

Non-Governmental Monitoring and Documentation

  • Ground Truthed.id (GTID): GTID is a forest monitoring platform that documents violations at the source, such as illegal oil palm plantations in forest zones and timber sourced from unlicensed concessions, to complement satellite monitoring.
  • Independent Forest Monitoring Network (JPIK): JPIK is an independent network that monitors forest activities and advocates for transparency and accountability in forest management.
  • Landscape Monitoring Initiative (WRI Indonesia): This initiative aims to advance forest conservation and deforestation reduction through an inclusive and collaborative approach, involving various stakeholders in monitoring and documenting restoration efforts.
  • Community-Based Monitoring Systems: Programs like CO-PROMISE in Riau province involve local communities in monitoring peatland restoration efforts, enhancing land management strategies through inexpensive, community-based systems.

These combined efforts from governmental and non-governmental organizations ensure comprehensive monitoring and documentation of reforestation and renaturation measures across Indonesia.

9. What are the procedures or requirements for obtaining consent from Indigenous Peoples or local communities regarding land use, especially concerning Free, Prior and Informed Consent (FPIC)?

In Indonesia, the principle of Free, Prior, and Informed Consent (FPIC) is recognized as a fundamental right of Indigenous Peoples and local communities concerning land use, particularly in relation to natural resource management. While Indonesia has not yet fully integrated FPIC into its national legal framework, several laws acknowledge the rights of Indigenous Peoples. For instance, Article 18B(2) of the 1945 Constitution recognizes the existence of customary law communities and their traditional rights as long as they are alive and in accordance with national development principles. Additionally, the 2013 Constitutional Court Decision No. 35/PUU-X/2012 acknowledges the customary forest rights of Indigenous communities. These legal provisions imply a recognition of the need for consultation and consent, aligning with the FPIC principle. However, the absence of explicit FPIC regulations leads to inconsistencies in its application. In practice, FPIC processes are often implemented by companies, particularly in sectors like palm oil and mining, through their corporate social responsibility (CSR) programs. These processes typically involve informing communities about proposed projects, obtaining their consent, and ensuring their participation in decision-making. International standards, such as those from the Forest Stewardship Council (FSC) and the Roundtable on Sustainable Palm Oil (RSPO), also require FPIC procedures for certification. Despite these efforts, challenges remain, including the need for clearer legal mandates and more robust enforcement mechanisms to ensure that FPIC is effectively implemented and respected across all sectors.

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3. Navigating the EUDR - Implications for Irish and UK Businesses


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