Indonesian rubber producers fear that the European Union’s Deforestation Regulation [EUDR] will put pressure on an already ailing industry by hindering exports to EU countries and beyond.
According to Statistics Indonesia (BPS), Southeast Asia’s largest economy exported over 2 million tonnes of rubber worth US$3.66 billion in 2022, with exports to EU countries recorded at 300,000 tonnes, which is 14% of the total.
Erwin Tunas, the executive director of the Indonesian Rubber Association (Gapkindo), estimates the EU rule could take a toll of over $500 million on export values if the domestic farmers and rubber product manufacturers can't meet the EUDR requirements.
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