EUDR for FMCG Companies: Supply Chain Challenges & Readiness From Regulatory Compliance to Supply Chain Readiness The European Union Deforestation Regulation (EUDR) is becoming increasingly important for companies operating global supply chains. For the Fast-Moving Consumer Goods (FMCG) sector, EUDR is not simply an environmental requirement. It can influence how companies select and evaluate suppliers, ensure raw material traceability, manage supply chain data, conduct risk assessments, and ensure that products are ready for the European Union market. With the current implementation date for large and medium-sized companies set for 30 December 2026, FMCG companies need to move beyond simply understanding EUDR and begin building supply chains that are ready to meet due diligence requirements. What Does EUDR Actually Require? There are three key requirements that relevant products must fulfil: EUDR Compliance Requirements 01 | Deforestation-Free: Products must not originate from land that has been subject to deforestation or forest degradation as defined under the regulation. 02 | Legal Production: Commodities must be produced in accordance with the relevant legislation in the country of production. 03 | Due Diligence Statement: Products must be covered by a Due Diligence Statement (DDS) before being placed on the European Union market or exported from the EU. Why Is EUDR Relevant to FMCG Companies? EUDR covers seven key commodities associated with deforestation: Cattle Cocoa Coffee Oil palm Rubber Soya Wood For FMCG companies, these commodities may enter the supply chain through a wide range of raw materials, ingredients, packaging materials and other products. This makes supply chain visibility and traceability increasingly important. Challenges for FMCG Companies in Addressing EUDR One of the key changes introduced by EUDR is the increased need for traceability down to the production location. Companies need to understand the following supply chain: Finished Product → Raw Material → Supplier → Processor/Trader → Production Location The implementation of EUDR presents several challenges for FMCG companies, particularly due to the complexity of their supply chains and the number of parties involved. Key challenges include: Complex Supply Chains FMCG companies typically operate long and complex supply chains involving multiple suppliers, processors, traders and producers. This can make it difficult to trace commodities back to their actual production locations. Limited Traceability Available information often only covers the supplier's name or country of origin. However, EUDR readiness requires greater visibility of the commodity's origin and production location. Geolocation Data The availability of accurate geolocation data is one of the key challenges. Companies need to ensure that production location information is available, accurate and traceable to support the due diligence process. Supplier Readiness The level of readiness can vary significantly between suppliers. Not all suppliers have established traceability systems, adequate documentation or the capability to provide the data required to meet EUDR requirements. Data Quality & Consistency Data collected from different suppliers may vary in format, completeness and quality. Companies therefore need to ensure that supply chain data is consistent, accurate, verifiable and properly documented. Risk Assessment & Mitigation Companies need to assess risks related to deforestation, legal production and their wider supply chains. Where risks or information gaps are identified, appropriate mitigation measures need to be determined and implemented. Cross-Functional Coordination EUDR is not solely the responsibility of the Sustainability team. Successful implementation requires collaboration across Procurement, Supply Chain, Quality, Legal/Compliance, IT/Data, Sustainability and Management to ensure that processes, data and documentation are managed effectively. What Should FMCG Companies Prepare? Companies can begin their EUDR preparation through five key stages: From Compliance to Supply Chain Resilience EUDR presents new challenges for FMCG companies. However, preparing for EUDR can also provide an opportunity to strengthen broader business systems and supply chain resilience. Better Traceability Companies can gain greater visibility of the origin of their raw materials. Better Supplier Management Companies can identify suppliers with gaps in traceability, documentation and data readiness. Better Risk Management Deforestation, legality and supply chain risks can be managed in a more systematic and structured manner. Better Data Quality Supply chain information can become more structured, consistent and verifiable. Better Market Readiness Companies can become better prepared to meet the requirements of customers and markets applying deforestation-related standards. Stronger Sustainability Governance EUDR can be integrated into broader sustainability, responsible sourcing, procurement and risk management systems. Referensi : 2. European Commission - EUDR ImplementationEuropean Commission - EUDR Implementation Resources 3. European Commission - Understanding Due DiligenceEuropean Commission - Understand Due Diligence 4. EUR-Le- Regulation EU) 2023/1115EUR-Le - EUDR Consolidated Regulation 5. European Commission - EUDR Information SystemEuropean Commission - EUDR Information System

Indonesia is entering a new era of environmental governance. As environmental, social, and governance (ESG) expectations continue to rise globally, governments are strengthening regulations to ensure businesses operate responsibly and minimise environmental impacts. In Indonesia, this commitment is reflected in the issuance of Minister of Environment/Environmental Control Agency Regulation (Permen LH/BPLH) No. 6 of 2026 concerning Environmental Supervision and Administrative Sanctions. The regulation represents more than a routine legislative update. It marks a significant shift towards a risk-based, transparent, and more enforceable environmental compliance system, reinforcing the government's ability to monitor business activities and respond more effectively to environmental violations. For organisations operating in Indonesia, particularly those in environmentally intensive industries, understanding this regulation is essential not only to remain compliant but also to strengthen long-term business resilience and ESG performance. What is Permen LH/BPLH No. 6 of 2026? Permen LH/BPLH No. 6 of 2026 is a ministerial regulation issued by the Ministry of Environment and the Environmental Control Agency (BPLH) that establishes procedures for environmental supervision and the implementation of administrative sanctions. The regulation provides a comprehensive framework governing how environmental compliance is monitored, how inspections are conducted, and how administrative enforcement measures are applied when businesses fail to meet their environmental obligations. Unlike previous regulations, this framework introduces a more structured and systematic supervision process by adopting a risk-based approach, enabling regulatory authorities to focus resources on activities that present the greatest environmental risks. The regulation also clarifies the respective responsibilities of the central government and regional authorities, ensuring greater consistency in environmental oversight throughout Indonesia. Ultimately, the regulation aims to improve environmental protection while providing greater legal certainty for both regulators and businesses. Permen LH/BPLH No. 6 of 2026 was therefore introduced to: strengthen environmental law enforcement; improve coordination between central and regional governments; establish a risk-based environmental supervision system; enhance legal certainty for businesses; improve consistency in inspection procedures; standardise the implementation of administrative sanctions; and ensure environmental supervision supports Indonesia's broader sustainable development agenda. The regulation also reflects Indonesia's growing commitment to international sustainability expectations, where regulators, investors, financial institutions, and global supply chains increasingly expect businesses to demonstrate effective environmental governance rather than merely obtaining permits. How Does This Regulation Fit into Indonesia's Environmental Regulatory Journey? The issuance of Permen LH/BPLH No. 6 of 2026 is part of a broader regulatory transformation that has taken place over the last several years. 2021 - Government Regulation No. 22 of 2021 introduced major reforms to environmental protection and management under the Job Creation Law. It replaced traditional environmental permits with Environmental Approval and integrated environmental compliance into Indonesia's new business licensing system. 2024 - The Ministry issued Permen LHK No. 14 of 2024, providing guidance on environmental supervision and administrative sanctions. While this regulation established important supervisory mechanisms, implementation revealed opportunities to improve consistency, inspection procedures, and coordination among authorities. 2025 - The Government introduced Government Regulation No. 28 of 2025, further strengthening Indonesia's Risk-Based Business Licensing system and requiring greater alignment across sectoral regulations. 2026 - To support these broader reforms, the Ministry issued Permen LH/BPLH No. 6 of 2026, replacing the previous ministerial regulation with a more comprehensive supervision and enforcement framework. Timeline of Indonesia's Environmental Supervision Reform Year Regulatory Milestone 2021 Government Regulation No. 22 of 2021 establishes Indonesia's modern environmental protection framework. 2021–2024 Environmental Approval becomes integrated into the OSS Risk-Based Licensing System. 2024 Permen LHK No. 14 of 2024 introduces procedures for environmental supervision and administrative sanctions. 2025 Government Regulation No. 28 of 2025 strengthens Indonesia's Risk-Based Business Licensing framework. 25 May 2026 Permen LH/BPLH No. 6 of 2026 is officially enacted. 15 June 2026 The regulation enters into force nationwide. Key Highlights of Permen LH/BPLH No. 6 of 2026 1. Risk-Based Environmental Supervision Environmental inspections are now prioritised based on: Business risk level Environmental complexity Compliance history PROPER performance Potential environmental impacts Companies with higher risks or repeated non-compliance are more likely to receive inspections. 2. Stronger Government Authority The Ministry may take over supervision from regional governments if: Serious environmental violations occur Local governments fail to conduct supervision Environmental damage exceeds regional capacity Major legal violations are identified This significantly strengthens central government intervention. 3. Two Types of Environmental Inspections The regulation introduces two supervision mechanisms: Regular Supervision Site inspections Virtual inspections Report reviews Incidental Supervision Public complaints Suspected violations Reports from industrial estate management Direct assignment by the Minister 4. Expanded Powers for Environmental Inspectors Environmental inspectors (PPLH) are authorised to: Enter facilities Review documents Collect environmental samples Take photographs and videos Inspect equipment Stop ongoing environmental violations immediately when necessary 5. Clearer Administrative Sanctions Administrative sanctions now include: Written Warning Government Coercive Measures Administrative Fine Suspension of Business Licence Revocation of Business Licence Administrative fines may reach up to IDR 3 billion, depending on the severity and type of violation. What's New Compared with Permen LHK No. 14 of 2024? Aspect Permen LHK No. 14/2024 Permen LH/BPLH No. 6/2026 Regulatory approach Environmental supervision More comprehensive supervision and enforcement Inspection approach Conventional Risk-based inspection planning Central Government intervention Limited Stronger takeover authority for serious violations Inspection method Mostly field inspections Field inspections, virtual inspections, and document review OSS integration Limited Mandatory integration with OSS Inspector authority General Expanded investigative authority Administrative sanctions Available More structured with clearer enforcement process Environmental evidence Less detailed Standardised reporting and evidence collection Which Industries Will Be Most Affected? The regulation applies broadly to businesses requiring environmental approvals. Industries with significant environmental impacts should pay particular attention, including: Palm Oil & Agriculture Mining & Minerals Forestry & Timber Manufacturing Food & Beverage Chemical Industry Pulp & Paper Energy & Power Generation Oil & Gas Industrial Estates Waste Management Infrastructure & Construction Logistics & Ports Companies managing wastewater, emissions, hazardous waste (B3), biodiversity, peatlands, mangroves, coral reefs, or other sensitive environmental aspects will likely face greater scrutiny How Should Companies Prepare? Businesses should move beyond minimum regulatory compliance and establish robust environmental governance systems. Key actions include: Review Environmental Permits Ensure Environmental Approval, Business Licences, and technical approvals remain valid and reflect current operations. Conduct Compliance Gap Assessments Evaluate compliance against legal obligations, permit conditions, and environmental management plans (AMDAL, UKL-UPL, RKL-RPL). Strengthen Environmental Monitoring Regularly monitor wastewater, emissions, hazardous waste, biodiversity, and other environmental performance indicators. Improve Documentation Maintain complete, organised, and inspection-ready environmental records. Prepare for Environmental Inspections Develop internal procedures, conduct mock inspections, and ensure personnel are prepared for both scheduled and unannounced inspections. Permen LH/BPLH No. 6 of 2026 marks a significant shift in Indonesia's environmental enforcement framework. By introducing risk-based supervision, stronger inspection powers, enhanced OSS integration, and clearer administrative sanctions, the regulation encourages businesses to adopt a more proactive and systematic approach to environmental compliance. For organisations operating in environmentally sensitive sectors, early preparation is essential not only to avoid regulatory sanctions but also to enhance operational resilience, improve ESG performance, and build long-term stakeholder trust. Reference : JDIH KLH/BPLH

Press Release - GSDC 2026 Tangerang, Indonesia – 25 June 2026 – Peterson Solutions Indonesia reaffirmed its commitment to advancing sustainable development through its participation in the Global Sustainable Development Congress (GSDC) 2026, held from 22–25 June 2026 at the Indonesia Convention Exhibition (ICE BSD), Tangerang. Throughout the four-day congress, Peterson Solutions Indonesia participated as an exhibitor, hosting a dedicated booth that served as a platform for discussion, collaboration, and networking with stakeholders from industry, academia, government, international institutions, and global organisations. The company's presence reflected its ongoing commitment to expanding strategic partnerships that support the implementation of more sustainable and resilient business practices. The Global Sustainable Development Congress is an international forum that brings together global leaders to exchange ideas, innovative solutions, and collaborative initiatives aimed at accelerating the achievement of the Sustainable Development Goals (SDGs). The event featured a comprehensive programme of conferences, panel discussions, workshops, and cross-sector networking sessions. Four Days of Collaboration and Knowledge Exchange Day One – 22 June 2026 The congress officially opened with keynote sessions featuring global leaders from government, industry, academia, and international organisations. Discussions highlighted the importance of global collaboration, innovation, and sustainable investment as key drivers for achieving the SDGs. On the opening day, Peterson Solutions Indonesia welcomed delegates to its exhibition booth to discuss sustainability solutions and sustainable supply chain development. Day Two – 23 June 2026 The second day marked a key milestone for Peterson Solutions Indonesia as Romain Pradier, Senior Program Manager & Sustainability Consultant, joined the congress as a speaker in the session entitled "Building Resilient Sustainable Supply Chains." During his presentation, Romain emphasised the importance of building resilient supply chains by strengthening supplier capabilities, enhancing data transparency, and implementing credible verification and certification processes. He also highlighted that resilient supply chains should be built upon three key pillars environmental resilience, economic resilience, and social resilience to generate long-term value for businesses while creating positive impacts for people and the environment. In addition to the speaking session, Peterson Solutions Indonesia's booth continued to serve as a hub for discussions on ESG strategy, supply chain resilience, responsible sourcing, and opportunities for collaboration with organisations committed to sustainability. Day Three – 24 June 2026 The third day focused on panel discussions, workshops, and business networking sessions exploring sustainability implementation, green innovation, sustainable finance, and stronger collaboration between the public and private sectors. Peterson Solutions Indonesia continued to engage with prospective strategic partners while showcasing its sustainability consulting services to visitors. Day Four – 25 June 2026 The final day of the congress provided an opportunity to strengthen the relationships established throughout the event. Closing sessions reinforced the importance of collective action and cross-sector collaboration in driving sustainable development. Peterson Solutions Indonesia concluded its participation with optimism about future partnerships that will contribute to sustainable business transformation in Indonesia and beyond. Strengthening Collaboration for a More Sustainable Future Peterson Solutions Indonesia's participation in the Global Sustainable Development Congress 2026 reflects the company's commitment to being a trusted partner in supporting sustainability transformation across industries. Through its presence as an exhibitor, active engagement in international discussions, and thought leadership demonstrated by Romain Pradier's presentation, Peterson Solutions Indonesia aims to strengthen collaboration with stakeholders in building more resilient, transparent, and sustainable supply chains that create lasting value for businesses, communities, and the environment. About Peterson Solutions Indonesia Peterson Solutions Indonesia is a sustainability consulting company that supports organisations in implementing Environmental, Social, and Governance (ESG) strategies, sustainable supply chain management, decarbonisation, certification, risk management, and other strategic solutions that help businesses achieve responsible and sustainable growth.

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 Pendekatan Unik Kami At Peterson, we are responsive and flexible. We build corporate teams from different regions and fields of expertise to best suit your requirements. Read more Risk Analysis Peterson dapat membantu Anda dalam memetakan risiko dampak sosial dan lingkungan yang merugikan dalam rantai pasokan Anda, berdasarkan komoditas dan geografi. 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 Towards EUDR 2026: Challenges and Supply Chain Readiness for FMCG Companies EUDR for FMCG Companies: Supply Chain Challenges & Readiness From Regulatory Compliance to Supply Chain Readiness The European Union Deforestation Regulation (EUDR) is becoming increasingly important for companies operating global supply chains. For the Fast-Moving Consumer Goods (FMCG) sector, EUDR is not simply an environmental requirement. It can influence how companies select and evaluate suppliers, ensure raw material traceability, manage supply chain data, conduct risk 6 days ago Indonesia Strengthens Environmental Compliance: Understanding Permen LH/BPLH No. 6 of 2026 Indonesia is entering a new era of environmental governance. As environmental, social, and governance (ESG) expectations continue to rise globally, governments are strengthening regulations to ensure businesses operate responsibly and minimise environmental impacts. In Indonesia, this commitment is reflected in the issuance of Minister of Environment/Environmental Control Agency Regulation (Permen LH/BPLH) No. 6 of 2026 concerning Environmental Supervision and Administrative Jul 8 Peterson Solutions Indonesia Demonstrates Its Commitment to Sustainability at the Global Sustainable Development Congress 2026 Press Release - GSDC 2026 Tangerang, Indonesia – 25 June 2026 – Peterson Solutions Indonesia reaffirmed its commitment to advancing sustainable development through its participation in the Global Sustainable Development Congress (GSDC) 2026, held from 22–25 June 2026 at the Indonesia Convention Exhibition (ICE BSD), Tangerang. Throughout the four-day congress, Peterson Solutions Indonesia participated as an exhibitor, hosting a dedicated booth that served as a platform for di Jun 29 View More Subscribe Form Join Thanks for subscribing!

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