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Indonesia faces significant challenges in complying with the European Union Deforestation Regulation (EUDR), particularly in key export commodities such as palm oil. Although the country has introduced various regulations to curb deforestation and protect forest areas, their effectiveness remains limited due to inconsistent law enforcement, weak governance, and policies that often prioritize commercial interests. In addition to deforestation, unresolved issues—including land conflicts involving Indigenous Peoples, corruption, limited data transparency, and business legality—pose substantial risks that may affect Indonesia's overall EUDR risk assessment.

The article recommends that EUDR implementation and risk assessments extend beyond measuring deforestation rates to incorporate broader governance indicators, including human rights protection, transparency, and meaningful stakeholder participation. It further calls on the European Union to support the development of deforestation-free supply chains through collaboration with the Indonesian government, civil society organizations, and smallholder farmers. Such an approach would enable the EUDR to serve not only as a trade regulation but also as a catalyst for more sustainable, equitable, and inclusive natural resource management.