Planting the forest at the root of the EU-Indonesia trade relationship

The EU opened trade talks for a Comprehensive Economic Partnership Agreement (CEPA) with Indonesia in 2016. Europe and Indonesia both have clear objectives for the trade deal, from increased sales in machinery and transport equipment, to raw materials such as palm oil. Palm oil is a key strategic interest for the Indonesian government. This report outlines how trade liberalisation may lead to some unintended, but avoidable consequences for natural resources, notably forests and timber; biodiversity; and human rights of indigenous peoples.

This report also sets out a number of key recommendations for policy makers to take responsibility and address the risk of trade as a driver of deforestation in Indonesia. The EU can take measures through a Free Trade Agreement (FTA), or by implementing new EU legislation.