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The EUDR has been postponed for the second time and will now take effect on 30 December 2026 for large enterprises (as operators) and 30 June 2027 for small businesses (SMEs).
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EU Revises EUDR Product Scope, Indonesian Rubber Industry Gains Greater Certainty Ahead of Regulation's Implementation

EU Revises EUDR Product Scope, Indonesian Rubber Industry Gains Greater Certainty Ahead of Regulation's Implementation

Medan, July 23, 2026 – The European Commission has officially updated the product scope and enhanced the digital system supporting the implementation of the European Union Deforestation Regulation (EUDR). The latest policy package is considered a significant development for commodity-producing countries, including Indonesia, as it provides greater legal certainty while simplifying compliance procedures ahead of the Regulation's full application at the end of 2026.

Through two new legal acts adopted on July 13, 2026, the European Commission revised the list of products covered by the EUDR and established updated technical rules for the EUDR Information System, the digital platform companies use to submit due diligence statements.

These measures follow the legislative amendment agreed upon in December 2025 and form part of the simplification package introduced by the Commission in May 2026. The objective is to provide greater certainty for businesses, EU Member States, and partner countries while ensuring that the Regulation can be implemented more effectively with fewer administrative burdens.

European Commissioner for Environment, Water Resilience and a Competitive Circular Economy, Jessika Roswall, stated that the package is intended to provide the clarity and predictability needed by all stakeholders before the Regulation enters into force.

Rubber Remains Covered, While Several Derived Products Are Removed

The most significant revision concerns Annex I of the EUDR, which specifies the list of products derived from the seven forest-risk commodities.

The European Commission has decided to remove several products from the Regulation's scope, including cattle hides, skins and leather, re-treaded tyres, soybeans for sowing, articles of vulcanised rubber, conveyor belts, transmission belts, and aircraft and motor vehicle seats.

At the same time, the EU has added several new products, namely soluble coffee, certain palm oil derivatives, and frozen cattle tongues. These newly added products will become subject to the EUDR from 30 December 2027, providing businesses with additional time to adapt their supply chains and compliance systems.

The Commission emphasized that these revisions do not alter the seven core commodities covered by the EUDR—cattle, cocoa, coffee, palm oil, rubber, soy, and wood. Consequently, due diligence requirements for natural rubber remain fully applicable.

Digital Information System Enhanced

In addition to updating the product scope, the European Commission has further improved the EUDR Information System, which serves as the backbone of the Regulation's implementation.

The upgraded platform introduces several simplifications, including simplified declarations for micro and small primary operators and updated technical specifications for Application Programming Interfaces (APIs), making integration with companies' internal systems more efficient.

The Commission also announced that additional functionalities will be introduced in the coming months. Following the completion of technical upgrades, the Information System reopened at the end of June 2026, while training sessions for businesses are scheduled to begin at the end of July.

Phased Implementation Through Mid-2027

Under the latest timeline, the EUDR will apply from 30 December 2026 to large and medium-sized operators, as well as micro and small operators already covered by the EU Timber Regulation (EUTR).

Other micro and small operators will become subject to the Regulation starting on 30 June 2027.

The phased implementation is intended to provide companies with sufficient time to strengthen supply chain traceability, collect geolocation data, and prepare the required due diligence documentation.

Environmental Groups Criticize Leather Exemption

Despite the simplification efforts, the decision to exclude leather products from the EUDR has drawn criticism from environmental organizations.

International watchdog Earthsight argued that the exemption could weaken the effectiveness of the Regulation, as leather consumption remains linked to deforestation, particularly in Latin America.

Previous studies have indicated that leather consumption in the European market contributes significantly to the global deforestation footprint. Earthsight also expressed concern over the broader exemptions granted to certain waste products, warning that they could create opportunities for misuse within international supply chains.

Nevertheless, the European Commission stated that the revisions were made following public consultations, technical assessments, and careful consideration of the readiness of the Information System to ensure the Regulation can be implemented more effectively.

Opportunities and Challenges for Indonesia's Rubber Industry

As one of the world's largest natural rubber producers, Indonesia has gained greater regulatory certainty from these latest developments. Natural rubber remains within the scope of the EUDR, although several rubber-derived products have been excluded from the Regulation.

This means that companies exporting rubber to the European Union must continue demonstrating that their raw materials originate from deforestation-free areas, comply with the relevant legislation of the producing country, and are supported by robust traceability systems.

At the same time, the streamlined product scope and enhanced digital platform are expected to reduce administrative burdens, improve reporting efficiency, and provide exporters with greater certainty in meeting EU market requirements.

For Indonesia's rubber industry, these developments represent an important opportunity to further strengthen supply chain traceability, accelerate digitalization, and enhance compliance with international sustainability standards. These efforts will be essential to maintaining the competitiveness of Indonesian rubber amid increasingly stringent global demand for environmentally responsible products.

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