Jakarta, July 3 -- Indonesia's Ministry of Foreign Affairs has raised concerns over the European Union Deforestation Regulation (EUDR), warning that it could disproportionately impact smallholder farmers who produce key export commodities.

"We have discussed this issue before, and among the problems we are currently facing, the most significant impact is on smallholders, especially those involved in rubber, cocoa, coffee, and palm oil," Deputy Foreign Minister Arif Havas Oegroseno told reporters in Jakarta on Thursday.

He said the regulation could make it more difficult for smallholders to export their goods to the EU, while farmers within the bloc are exempt under a new "negligible risk" classification.

"If this is accepted, it clearl...