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Expanding Inclusive and Efficient Forest Certification for Small-Scale Producers On 18 July 2025 , the Forest Stewardship Council (FSC) officially approved the Asia-Pacific Regional Forest Stewardship Standard (AP RFSS)  as a full forest management standard. This decision marked the transition from its pilot status to an official certification framework, effective 1 July 2025 , following four years of trials in countries including Indonesia, Vietnam, Thailand, and India. AP RFSS has been developed specifically for smallholders and small-scale forest managers, aiming to overcome long-standing barriers related to the complexity and cost of conventional FSC certification. Why AP RFSS Matters Throughout the Asia-Pacific region, many smallholders manage forest areas under 5 hectares, often with limited resources and technical skills. The traditional FSC standard has been seen as too complicated for these situations. AP RFSS addresses these challenges through a more practical and context-adapted approach. Its main features include: Clearer and simplified language Flexible and proportionate compliance requirements More affordable and streamlined audit processes Emphasis on field-applicable sustainability practices This tailored approach enables broader participation in sustainable forest management and certification, particularly among smallholder communities. Promising Outcomes from the Pilot Stage Since its pilot launch in 2021, AP RFSS has produced promising results: Over 68 audits  conducted across four countries Approximately 57,000 hectares  of smallholder-managed land certified in Indonesia and Vietnam Positive feedback from farmer groups regarding the relevance and practicality of the standard Opened pathways for certification of non-timber forest products (NTFPs)  and ecosystem services These results played a key role in FSC’s decision to officially endorse AP RFSS as a complete standard for the Asia-Pacific region. Strategic Importance for Indonesia As a country with great potential in smallholder forestry, Indonesia can gain significantly from adopting AP RFSS, especially among: Forest Farmer Groups (Kelompok Tani Hutan/KTH) Forestry cooperatives and agroforestry communities Social forestry programmes and indigenous forest managers This new standard provides a more accessible pathway to international certification, helping smallholders meet market demands for legal and sustainable forest products and boosting their competitiveness in global supply chains. How Peterson Solutions (Indonesia) Can Support As a trusted partner in sustainability and certification services, Peterson Solutions (Indonesia)  is ready to assist organisations, cooperatives, and smallholders in adopting and achieving FSC certification through AP RFSS. Our services include: Technical assistance for AP RFSS compliance Supporting documentation, procedures, and field practices aligned with FSC indicators. Training for farmers and forest management groups Delivering accessible training materials tailored to practical application. Pre-audit assessments and certification readiness Conducting mock audits to identify gaps and ensure preparedness for formal audits. Support for NTFP and ecosystem service development Helping identify and develop sustainable business opportunities for added value. With a context-driven approach and proven on-the-ground experience, Peterson Solutions (Indonesia) is dedicated to making FSC certification more accessible, relevant, and impactful for smallholders and local communities.   Source: https://fsc.org/en/newscentre/general-news/asia-pacific-regional-forest-stewardship-standard-for-smallholders-now-an

Background: Building an Integrated Environmental Planning Framework As part of efforts to strengthen environmental protection and management, the Government of Indonesia has issued two key regulations: Government Regulation (GR) No. 22 of 2021 on the Implementation of Environmental Protection and Management  and GR No. 26 of 2025 on Environmental Protection and Management Planning . These two policies complement each other: GR 22/2021 focuses on technical implementation (such as EIA and environmental permits), while GR 26/2025 reinforces long-term strategic planning through the Environmental Protection and Management Plan (RPPLH) . With an approach based on environmental carrying capacity and load capacity, and enhanced coordination between central and regional governments, GR No. 26 of 2025 serves as a critical instrument to bridge the vision of sustainable environmental governance with national and regional development practices. Key Differences Between GR No. 22 of 2021 and GR No. 26 of 2025 Category GR No. 22 of 2021 GR No. 26 of 2025 Regulatory Focus Implementation of environmental protection and management, including environmental permitting Planning of environmental protection and management through RPPLH development Objective Provides legal basis for EIA, UKL-UPL, and environmental control mechanisms Serves as a reference for environmentally sound national and regional development Main Instruments EIA, UKL-UPL, SPPL, quality standards, environmental monitoring National, Provincial, and District/City-level RPPLH Approach Permit- and activity-based Based on environmental carrying capacity and load capacity, and eco-regions Role of Regional Government Executes environmental approvals and monitors activities Develops and establishes RPPLH as a reference for spatial planning and local development Integration with Spatial Planning Not explicitly required as reference for spatial plans RPPLH must be integrated into Spatial Plans (RTRW)  and Strategic Environmental Assessment (KLHS) Institutional Coordination Focused on permitting and supervision by MoEF and local governments Promotes synergy among MoEF, sectoral ministries/agencies, and local governments in planning Monitoring Supervision of business/activities based on permits Monitoring of RPPLH implementation and periodic evaluation every five years What’s New and Strengthened in GR No. 26 of 2025? Planning as a Foundation This regulation elevates environmental planning from being merely administrative to becoming a decision-making tool for development at all levels of government. Carrying Capacity and Eco-Regions GR 26/2025 adopts an approach based on environmental carrying and load capacity , aligned with eco-regional conditions  to ensure development remains within environmental limits. Integration with Spatial Plans and KLHS RPPLH is established as a key reference in preparing Spatial Plans (Rencana Tata Ruang Wilayah – RTRW)  and conducting Strategic Environmental Assessments (Kajian Lingkungan Hidup Strategis – KLHS) , ensuring that environmental considerations are embedded in land-use and sectoral planning. Evaluation and Reporting Every RPPLH must be reviewed every five years , with evaluation results used to update the plan and assess its effectiveness in environmental protection and management. Why This Matters Consistency Between Permits and Planning These two regulations together ensure a clear legal connection between strategic environmental planning (RPPLH) and its technical execution (environmental permits). Strengthened Legal Certainty RPPLH becomes a legitimate instrument to screen development plans based on environmental capacity, reducing conflicts in land-use decisions. More Controlled Development RPPLH integration into spatial planning helps prevent environmentally damaging expansion and promotes more sustainable land use. Conclusion GR No. 26 of 2025 marks a significant step forward in strengthening Indonesia’s environmental policy framework. Complementing GR No. 22 of 2021, this regulation ensures that all national and local development activities are anchored in a strong, planned, and sustainable environmental foundation. Collaboration between the central government, regional authorities, and relevant sectors is key to ensuring that RPPLH functions not just as a document—but as a guiding instrument for Indonesia’s greener and more resilient future.

Understanding the EU Deforestation Regulation (EUDR) The European Union has adopted the EU Deforestation Regulation (EUDR)  as part of its Green Deal to reduce the bloc’s global deforestation footprint. The regulation requires that products placed on or exported from the EU market must not be sourced from land deforested after 31 December 2020 . The regulation covers seven key commodities: palm oil, cocoa, coffee, soy, rubber, wood, and cattle , along with derived products such as furniture, leather, and processed foods. Implementation Timeline and Technical Guidance Initially set for 30 December 2024  for large companies and 30 June 2025  for SMEs, the European Commission has extended the deadlines following stakeholder feedback: 30 December 2025  for large operators 30 June 2026  for small and medium-sized enterprises (SMEs) In parallel, updated technical guidelines were released in April 2025 to streamline reporting and reduce compliance costs by up to 30%. A Digital Due Diligence System All operators placing in-scope products on the EU market will be required to submit a Due Diligence Statement  digitally via the EU’s official Information System. This declaration must include: Geolocation data of the production area Product volume and type Evidence of deforestation-free origin Compliance with relevant laws in the country of production These declarations carry legal weight and may be subject to verification by EU Member State authorities. Risk-Based Oversight The European Commission will categorise source countries under three risk levels: low, standard, or high . These classifications will determine the depth of scrutiny and documentation required. Indonesia, along with other major producers like Brazil and Malaysia, is expected to be under particular focus—especially for commodities with historical deforestation concerns. What Does This Mean for Indonesia? As a top global exporter of palm oil, rubber, and coffee , Indonesia stands to be directly affected by EUDR. Yet this also presents a unique opportunity to: Strengthen supply chain transparency , particularly for forest-linked commodities Elevate sustainability standards  across producers, cooperatives, and exporters Access green finance opportunities  through conservation-linked initiatives Unlock premium markets  with verified deforestation-free credentials Strategic Steps for Readiness To navigate this transition, stakeholders in Indonesia should prioritise the following: Geospatial supply chain mapping, Implement digital traceability tools to validate origin data. Risk and deforestation assessments, Identify at-risk areas and develop appropriate mitigation strategies. Capacity-building for smallholders and cooperatives, Deliver training and support to ensure practices align with EUDR standards. Foster multi-stakeholder collaboration, Involve government, private sector, and civil society to enhance credibility and data transparency. Building a Sustainable and Resilient Commodity Future EUDR should not be seen solely as a trade barrier, but as a catalyst for transforming Indonesia’s commodity sectors  towards greater transparency, accountability, and long-term market competitiveness. It offers a timely opportunity to align with global climate goals while enhancing Indonesia’s role in sustainable trade. How Peterson Solutions Indonesia Can Support At Peterson Solutions Indonesia , we provide end-to-end advisory services to support EUDR readiness, including: Supply chain risk mapping and assessment Traceability system design and implementation Training for field-level actors and exporters Digital due diligence reporting support With the right preparation and collaborative approach, Indonesian producers and exporters can not only comply with EUDR but lead in the global shift toward sustainable commodities.

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Peterson Indonesia's Environmental Consultants provide direct solutions to your environmental challenges while guaranteeing your trust is well-placed. Peterson Solutio ns Indon esia Sustainability Consulting Find Services Sustainability Reporting Peterson offers a number of services to support you creating a sustainability report, also referred to as a corporate social responsibility (CSR) report. Read more Our Unique Approach At Peterson, we are responsive and flexible. We build corporate teams from different regions and fields of expertise to best suit your requirements. Risk Analysis Peterson can assist our customers in mapping the risks of adverse social and environmental impacts in your supply chain, by commodities and geographies. Read more Read more 70 4000 SOME OF OUR HAPPY CLIENTS Find A Local Office You will be redirected to our international website Find an office News & Events FSC Approves AP RFSS: A New Opportunity for Smallholders in Asia-Pacific Expanding Inclusive and Efficient Forest Certification for Small-Scale Producers On 18 July 2025 , the Forest Stewardship Council (FSC)... Jul 23 Strengthening Environmental Planning: A Comparison of Government Regulation No. 22 of 2021 and No. 26 of 2025 Background: Building an Integrated Environmental Planning Framework As part of efforts to strengthen environmental protection and... Jun 26 EUDR 2025: Opportunities and Challenges for Indonesian Commodities Under the EU’s Green Trade Agenda Understanding the EU Deforestation Regulation (EUDR) The European Union has adopted the EU Deforestation Regulation (EUDR) as part of... Jun 11 View More Subscribe Form Join Thanks for subscribing!

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