The EU Deforestation Regulation — known as EUDR — entered into full legal force in 2025. For any business that imports furniture, timber, or wood-based products into the European Union, it represents the most significant compliance development in international timber trade in decades.
This article explains what EUDR is, who it applies to, exactly what documentation it requires, how it affects Indonesian furniture specifically, and what steps buyers should take immediately to ensure compliance.
What is the EUDR?
The EU Deforestation Regulation (EU Regulation 2023/1115) is European Union law designed to ensure that certain commodities and products sold in the EU have not contributed to deforestation or forest degradation anywhere in the world.
It replaces the previous EU Timber Regulation (EUTR), which focused on legality. EUDR goes significantly further — requiring operators to demonstrate not only that timber was legally harvested, but that the land on which it was produced has not been subject to deforestation since 31 December 2020.
Furniture made from wood is explicitly included in EUDR's scope. Any business placing wooden furniture on the EU market — whether they manufactured it, imported it, or are a retailer selling it — is subject to EUDR obligations.
Who Does EUDR Apply To?
EUDR applies to two categories of business:
Operators
Any company that places a regulated product on the EU market for the first time — including importers buying furniture from Indonesia and selling it in the EU. Operators bear the heaviest compliance obligations.
Traders
Companies that buy and sell regulated products already placed on the EU market — including many retailers. Traders have lighter obligations but must be able to trace their supply chain to the original operator.
If you are an EU-based furniture retailer sourcing from Indonesia, you are an operator under EUDR. If you are a non-EU company selling to EU retailers, those retailers are operators — but they will require your EUDR documentation as a condition of purchase.
What Documentation Does EUDR Require?
EUDR requires operators to conduct and document due diligence before placing products on the EU market. This due diligence must demonstrate:
1. Geolocation Data
The geographic coordinates of the plots of land where the timber used in the product was produced. For furniture, this means tracing the timber back to the specific forest, plantation, or forest concession where it was harvested — and providing the polygon or point coordinates of that land.
2. Deforestation-Free Confirmation
Evidence that the relevant land has not been subject to deforestation or forest degradation since 31 December 2020. This is verified against satellite data and forest monitoring databases.
3. Legal Compliance
Confirmation that the timber was legally produced in the country of origin — including compliance with forest law, land use rights, environmental laws, labour rights, and anti-corruption frameworks.
4. Due Diligence Statement
A formal Due Diligence Statement (DDS) submitted to the EU Information System before the product is placed on the market. This statement references all supporting documentation and certifies operator compliance.
Key deadline: EUDR applies to products placed on the EU market from 30 December 2024 (large operators) and 30 June 2025 (small and medium operators). Products in transit before these dates that were produced under EUTR compliance are subject to transitional provisions.
How Does EUDR Affect Indonesian Furniture Specifically?
Indonesia is one of the world's most important furniture exporting nations — and also one of the countries whose forestry practices have historically drawn scrutiny from environmental organisations. EUDR directly addresses this.
The good news for Indonesian furniture is that Indonesia's SVLK (Timber Legality Verification System) provides much of the foundational documentation needed for EUDR compliance — specifically on the legality dimension. SVLK already requires supply chain traceability and legal harvest verification.
However, SVLK alone is not sufficient for full EUDR compliance. The additional requirements that EUDR adds beyond SVLK include:
- Geolocation coordinates of the specific land parcels where timber was produced — SVLK does not systematically capture this
- Deforestation-free confirmation linked to satellite monitoring data — this requires cross-referencing with EU-approved deforestation monitoring systems
- Due Diligence Statement submission to the EU Information System — a formal digital submission process that SVLK does not cover
This means that Indonesian suppliers who have historically relied on SVLK documentation to satisfy EU buyers now need to provide additional information and documentation to meet EUDR requirements.
What Should EU Furniture Buyers Do Right Now?
Audit Your Current Supply Chain
Map every product you currently source or plan to source that contains wood. Identify which suppliers are in your supply chain, what timber species they use, and where that timber originates.
Request EUDR Documentation from Your Suppliers
Contact every Indonesian supplier and ask them to confirm:
- Their SVLK certification status and certificate number
- Whether they can provide geolocation data for their timber sources
- Whether they have prepared or are preparing EUDR-compliant due diligence packages
If your current suppliers cannot provide this documentation, you are exposed. Either work with them to build compliance capability or identify suppliers who are already EUDR-ready.
Prepare Your Due Diligence System
EUDR requires operators to have a documented due diligence system in place — not just collect documents on an order-by-order basis. This system should include risk assessment procedures, information collection protocols, and mitigation measures for identified risks.
Submit Due Diligence Statements
Before placing any regulated product on the EU market, submit a Due Diligence Statement through the EU EUDR Information System. This is a legal requirement — not optional documentation.
How Teak Route Handles EUDR Compliance
Teak Route prepares full EUDR compliance documentation as standard on all EU-bound furniture shipments. This includes:
- SVLK V-Legal certification for all timber components
- Geolocation data for timber source plots, sourced directly from our factory and timber supplier network
- Deforestation risk assessment documentation cross-referenced against approved monitoring sources
- Full due diligence package compiled and provided to the buyer before shipment
- Support for buyers preparing their own Due Diligence Statement submissions to the EU Information System
EU buyers working with Teak Route do not need to build EUDR compliance capability in-house — we handle the documentation on the ground, where the information originates.
The Penalties for Non-Compliance
EUDR penalties are significant. EU Member States are required to impose:
- Fines proportional to the environmental damage caused and the economic benefit gained — up to 4% of total annual EU turnover
- Confiscation of products and revenues derived from non-compliant products
- Temporary exclusion from public procurement and from access to public funding
- Prohibition from placing the regulated commodities on the EU market
For furniture importers and retailers, the reputational risk of a EUDR violation — particularly as sustainability credentials become an increasingly important commercial differentiator — may be as significant as the financial penalties.
A Note for Non-EU Buyers
Even if you are not currently selling into the EU, EUDR sets a standard that other markets are watching closely. The UK, Australia, and the USA all have timber import regulations that may align more closely with EUDR principles in coming years. Building EUDR-compliant sourcing practices now positions you ahead of this curve.
If you have questions about EUDR compliance for your Indonesian furniture sourcing, contact Teak Route at enquiry@teakroute.com. Our team in Jakarta can assess your current supply chain and prepare the documentation your EU buyers require.