- An investigation tracing Indonesian trees to no longer too prolonged within the past cleared forests shows EU-dash provide chains aloof lift deforestation risks, at the same time as the bloc prepares to implement stricter principles.
- The upcoming EU Deforestation Law (EUDR) is already keen behavior, with some European investors and Indonesian suppliers chopping ties and tightening traceability.
- However exchange files from 2025 show excessive-possibility imports proceed, highlighting uneven growth and protracted loopholes in complicated, opaque provide chains.
- Researchers and advocates pronounce handiest paunchy, fixed enforcement of the EUDR, alongside stronger due diligence and reforms in Indonesia, will meaningfully curb deforestation-linked trees exchange.
JAKARTA — A variety of European trees corporations web reduce ties with suppliers linked to deforestation in Indonesia following a 2025 investigation, suggesting that an upcoming European Union legislation is already influencing behavior earlier than its implementation at the pause of 2026.
Restful, original exchange files show imports from excessive-possibility suppliers persisted in 2025, elevating concerns that trees linked to woodland clearance must aloof aloof be coming into EU provide chains.
In their 2025 investigation, U.Okay.-basically based NGO Earthsight and its Indonesian accomplice, Auriga Nusantara, traced trees from no longer too prolonged within the past cleared forests in Indonesian Borneo to European importers, the usage of authorities documents, satellite imagery and exchange records. Inspecting nearly 10,000 unpublished documents submitted to Indonesian authorities, the investigators identified cases the establish apart trees produced thru woodland clearance had entered European provide chains in some cases.
The findings showed that the head 5 users of deforestation-linked wooden in Indonesia in 2024 all exported products to the EU. Their predominant European customers had been corporations within the Netherlands, Belgium and Germany, which collectively ordered greater than 23,000 cubic meters (812,200 cubic feet) of wooden products that yr, including plywood, decking and door frames. Whereas handiest some shipments would be directly verified, the investigation pointed to a wider possibility that trees linked to deforestation is coming into EU markets thru opaque provide chains.
However despite these findings, the investigation has already triggered adjustments among a number of the corporations concerned, with diverse chopping ties with the suppliers named within the file. Below the EU’s original antideforestation legislation, the EUDR, space to come into force at the pause of this yr, deforestation-linked trees would be banned from coming into the EU market.
“It’s surely encouraging to appear for these critical adjustments made no longer true by corporations within the EU, but by their suppliers in Indonesia, to reject wooden linked to deforestation,” Aron White, Earthsight’s Southeast Asia lead, told Mongabay. “This shows the energy of legislation love the EUDR: it creates an environment wherein the usage of unsustainable or untraceable commodities turns into a serious enterprise possibility for an exporting company.”
However original exchange files advocate these adjustments stay uneven.
Swap in enterprise
Amongst the corporations altering their insurance policies is Belgium-basically based Fepco International, the glorious recipient of Indonesian plywood shipped to the EU in 2024. The investigation came upon that Fepco imported hardwood plywood made of meranti (Shorea spp.) and completely different species from three Indonesian corporations identified as predominant users of deforestation wooden.
Since the e-newsletter of the file, Fepco has amended its sourcing insurance policies and contracts to exclude suppliers linked to deforestation. The corporate acknowledged it took this step on tale of it wished to personal away from such associations.
“We prefer to be acknowledged out there by our customers that doing enterprise with Fepco must aloof be … zero possibility,” acknowledged managing director Alexander de Groot.
Fepco has also strengthened its traceability requirements. Whereas it previously relied on Indonesia’s SVLK trees legality certification design, it now requires suppliers to also provide harvesting licenses, transport documents and GPS coordinates. These documents are being ancient to assess compliance with the upcoming EUDR, that can even apply to utterly different deforestation-possibility commodities alongside trees, similar to palm oil, rubber and coffee.
Dutch trees importer Dekker Hout, one other predominant purchaser identified within the Earthsight file, acknowledged it had suspended shipments from suppliers named within the file pending additional investigation and had launched an interior evaluation.
“Dekker Hout operates under strict due diligence procedures and is totally committed to compliance with all acceptable legislation, including the EU Timber Law (EUTR) and the upcoming EU Deforestation Law (EUDR),” managing director Olaf van Biezen told Earthsight.
Indonesia takes tear
On the Indonesian facet, PT Korindo Ariabima Sari, the 2d-glorious exporter of trees from Indonesia to the EU in 2025, has also taken tear. In 2024, the corporate sourced 14,497 m3 (511,957 ft3) of deforestation-linked wooden, representing about 8% of its total consumption, from cleared forests in a concession managed by PT Indosubur Sukses Makmur (ISM) in eastern Borneo. That very same yr, ISM cleared an establish apart of rainforest the size of New York Metropolis’s Central Park within its concession to personal manner for plantations.
Following the file, Korindo acknowledged it had completely stopped shopping trees from ISM and its distributor.
“PT Korindo Ariabima Sari is committed to making sure that our entire trees provide chain is free from deforestation,” its president director, Kim Young Man, wrote to Earthsight.
EUDR impact
Earthsight acknowledged these responses show how the EUDR is already reshaping the Indonesia-EU trees exchange, even before it comes into force. By turning links to deforestation into a commercial possibility, the legislation is pushing corporations to ogle their provide chains extra carefully.
“There’ll positively be some cases the establish apart suppliers export their less sustainable product to utterly different markets, but what we’re seeing right here is corporations in Indonesia making adjustments to personal dash sustainability across their provide,” White acknowledged. “This shows the aptitude influence of the EUDR goes a ways beyond true exports to the EU: it is keen the baseline of sustainability at a world scale.”
A separate diagnosis by advocacy community Forest Trends suggests these company-level adjustments reflect a broader shift already underway. The diagnosis came upon that while early responses to the EUDR had been largely confined to person provide chains, governments in as a minimal 25 producer countries are now rolling out nationwide initiatives — from traceability programs to land mapping and gleaming reforms — aimed at assembly the legislation’s requirements.
These efforts web the aptitude to reshape woodland governance beyond EU-dash exports, although their effectiveness remains unsure and uneven. Separate investigations, including the one by Earthsight, show excessive-possibility provide chains stay energetic.
“There is aloof work to connect,” White acknowledged. “It changed into as soon as no longer subtle for us to catch imports of very excessive-possibility trees in 2025. This shows why handiest legislation can surely shift the dial within the vogue we want: it raises the ground and creates a level playing field of duties for all gamers out there, no longer true folk that pick on to focal point on sustainability for values-basically based or marketing reasons.”
Dangers persist
The use of Indonesian exchange records for 2025, Earthsight identified persisted imports into the EU from suppliers carefully reliant on deforestation-linked wooden. One such case involves PT Kayu Lapis Asli Murni (PT KLAM), an Indonesian plywood producer that in 2024 sourced 87% of its pure woodland logs (17,853 m3, or 630,473 ft3) from woodland clearance within the ISM concession.
Mighty of this trees changed into as soon as meranti, incessantly identified as lauan, a tropical hardwood came upon handiest in pure forests and widely ancient in recreational autos due to its flexibility and moisture resistance.
Earthsight’s diagnosis came upon that KLAM exported meranti plywood to Italian company Maller Srl in 2025. Maller manufactures wooden-basically based panels ancient in cell homes, motorhomes and campervans, and exchange stories show it presents presents to many European RV manufacturers.
In a written response, Maller didn’t directly utter that its imports would be linked to deforestation. As a exchange, the corporate acknowledged it complied with existing regulations, including the EUTR, and relied on Indonesia’s SVLK legality certification design and third-occasion verification when sourcing trees. It acknowledged it wasn’t attentive to any unlawful or noncompliant practices by its suppliers at the time of maintain, and that procurement choices had been in line with legitimate documentation.
White acknowledged Earthsight changed into as soon as no longer alleging any unlawful assignment, handiest that Maller’s provider had ancient magnificent quantities of trees derived from woodland clearance.
“This remains gleaming in Indonesia, if the true permits are held and processes followed, but that does not imply it is sustainable,” he acknowledged. “Significantly the corporate has no longer denied that their provider uses wooden from gleaming deforestation.”
Following Earthsight’s inquiry, Maller acknowledged it had initiated additional interior checks and requested updated documentation from its suppliers. It also celebrated that the EUDR just isn’t any longer yet completely in force, and acknowledged it’s monitoring trends to personal dash future compliance.
White acknowledged Earthsight isn’t claiming there were any violations of the EUDR. The legislation, when it comes into force, will replace the latest EUTR, which handiest bans unlawful trees within the EU but doesn’t quilt trees linked to deforestation (which, in locations love Indonesia, would be both gleaming or unlawful).
“In point of fact one of the most applications of our research has been to flag provide chains keen wooden from deforestation now, earlier than the EUDR coming into force, so corporations can act on the records and personal dash their provide chains are completely compliant before they are risking being in violation of the law,” White acknowledged.
Earthsight acknowledged that as prolonged as corporations proceed sourcing from suppliers similar to KLAM, they stay liable to shopping trees linked to deforestation, although the wooden is believed of as gleaming under newest regulations.
Loyal audit stories reviewed by the community show that KLAM persisted to offer trees from woodland clearance within the ISM concession in 2025. Satellite diagnosis shows that deforestation also persisted within the concession, with round 400 hectares (1,000 acres) of woodland cleared within a wider establish apart of roughly 1,800 hectares (4,400 acres) of predominant woodland tormented by logging and avenue constructing. These actions prolonged into 2026.
“Any imports of wooden products from PT KLAM in 2025 had been due to this truth at extremely excessive possibility of containing deforestation wooden, which would perchance likely be non-compliant with the EUDR when it is enforced,” Earthsight acknowledged.
Solutions
Earthsight acknowledged that while the EUDR is already driving adjustments out there, the persisted exchange in excessive-possibility trees highlights the need for stronger tear earlier than its implementation.
The community known as on European importers to clutch a extra proactive role in cleansing up their provide chains by requiring suppliers to exclude trees derived from woodland clearance and by tracing products abet to the concessions from the establish apart they had been harvested, including thru intermediaries. Contracts must aloof be terminated the establish apart such links are came upon, it acknowledged.
Earthsight also warned that Indonesia’s SVLK legality certification design doesn’t guarantee that trees is deforestation-free, because it specializes in legality in decision to environmental influence. Corporations must aloof due to this truth transcend certification schemes and habits their personal due diligence, including annoying paunchy traceability supported by audits, scientific testing and unannounced living inspections.
At the policy level, the community urged EU establishments to withstand efforts to prolong or weaken the EUDR, whose implementation has been postpone for two years in a row, and to personal dash its paunchy implementation by the pause of 2026. Earthsight acknowledged clear and well timed enforcement is most predominant to driving commerce within the field.
“A fixed message we heard from the EU corporations we spoke to is that they’re ready for the EUDR and frustrated by delays and unpredictability,” White acknowledged. “The [European] Commission must reject any additional makes an attempt to prolong or weaken the EUDR and personal dash it is utilized in paunchy at the pause of this yr. Corporations web had diverse years now to prepare — they prefer to aloof be ready.”
Earthsight incessantly identified as on Indonesian corporations to pause sourcing trees linked to woodland conversion and to enhance transparency by sharing detailed files on their provide chains with investors. The Indonesian authorities, within the period in-between, must aloof toughen protections for remaining pure forests and reform its SVLK design to enhance transparency and personal dash it doesn’t certify trees from deforestation as sustainable.
Auriga estimated that 58% of deforestation in Indonesia in 2025 happened legally within concessions or authorities tasks, highlighting the boundaries of existing regulatory frameworks in addressing woodland loss.
Banner listing: Logs from pure woodland reduce down within the PT Bina Sarana Sawit Utama oil palm concession in Central Kalimantan, Borneo, November 2024. The yellow labels show the logs were legally recorded within Indonesia’s trees traceability programs. Image courtesy of Auriga / Earthsight.
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