Indonesia flags EU deforestation rules and US steel tariffs as trade hurdles

Indonesia's trade minister Hartarto warned that Europe’s non-tariff measures are tightening on Indonesian commodities. The EU’s deforestation regulation, known as the EUDR, has been postponed to next year, yet its looming requirements continue to pressure exporters of plantation and forestry goods. He added that the EU’s Carbon Border Adjustment Mechanism will levy charges on products with high carbon footprints or those powered by non-green electricity, further restricting market access.

Across the Pacific, the United States is pursuing a Global Excess Steel agenda that includes a 50% tariff on imported steel, targeting Indonesian steel exports among others. Hartarto stressed the need for Indonesia to track these developments and devise strategies that enhance the competitiveness of domestic producers, which he said is vital for job creation and economic expansion.