Bridging the Compliance Gap: Empowering Indonesia’s Agricultural Sector Through Collaboration and Innovation
- Vega Welingutami
- 4 hours ago
- 3 min read
This article is adapted from:
The evolving global regulatory landscape presents both challenges and opportunities for Indonesia’s agricultural sector. At KOLTIVA’s recent BeyondTraceability Talks, held on 22 January 2025, industry leaders, policy experts, and private sector players convened to address the pressing need for compliance with sustainability regulations, particularly the European Union Deforestation Regulation (EUDR), the Corporate Sustainability Reporting Directive (CSRD), and the Corporate Social Due Diligence Directive (CSDDD). The discussions underscored a fundamental reality: compliance is no longer an option but a necessity for businesses seeking to maintain global market access.
The Urgency of Compliance and the Role of Stakeholders
The agricultural industry, which is the backbone of Indonesia’s economy, is at a critical juncture. While global markets demand increased transparency and ethical sourcing, smallholder farmers—who form the majority of the supply chain—face significant barriers to compliance. Many lack access to digital tools, funding, and infrastructure, making adherence to stringent regulatory requirements a daunting challenge (RSM, 2024).
Diah Suradiredja from the Indonesia Coordinating Ministry of Economic Affairs (CMEA) emphasized the need for a forward-looking approach: “While the EUDR is a critical regulation, it’s not the only one. Emerging regulations, such as the CSRD and CSDDD, could also impact the way the industry operates. It’s essential that all stakeholders are aware of these frameworks and start preparing their compliance efforts accordingly.”
In response, the Indonesian government has implemented initiatives such as the National Dashboard, a data management platform aimed at enhancing traceability and monitoring compliance. This database is essential in identifying land status, registering smallholder farmers, and ensuring legal documentation is in place. However, addressing these challenges requires a collaborative approach, with private-sector players like KOLTIVA playing a pivotal role in closing the compliance gap.
Technology as a Catalyst for Sustainability
At KOLTIVA, we recognize that compliance is not merely about meeting regulatory requirements—it is about creating long-term sustainability and resilience in the agricultural sector. Our KoltiTrace platform provides a comprehensive traceability solution, enabling businesses to track products from seed to table. By integrating real-time data collection and verification processes, we help stakeholders demonstrate due diligence and compliance with deforestation-free commitments.
Beyond traceability, capacity building remains a cornerstone of the approach. We deploy on-the-ground support teams to train producers on Good Agricultural Practices (GAP), land legality, and sustainability standards. Our experience has shown that combining digital tools with direct engagement leads to higher adoption rates and improved long-term outcomes for smallholders.
“Our role is to facilitate a transparent and accountable agricultural supply chain. I believe technology is transforming regulatory compliance in several ways: transparency and traceability, risk management, automation and efficiency, and building trust by enhancing collaboration,” said Ainu Rofiq, Co-Founder and Board Member of KOLTIVA. “We work closely with governments, NGOs, and businesses to provide solutions that ensure full traceability and help stakeholders meet evolving regulatory standards. It’s all about empowering local communities, enhancing supply chain integrity, and supporting long-term sustainability.”
Collaboration: The Key to Inclusive Growth
Regulatory compliance cannot be achieved in isolation. Multi-stakeholder collaboration is essential to bridging the compliance gap and ensuring smallholders are not excluded from global markets. Organizations such as PISAgro have highlighted the importance of partnership-driven initiatives that bring together producers, cooperatives, and industry players to drive sustainability efforts at scale.
However, compliance costs remain a major concern. Setting up traceability systems and obtaining certifications require significant investments, which many smallholders cannot afford. To mitigate these economic barriers, public-private partnerships must focus on providing financial support, training programs, and accessible technology solutions tailored to the needs of smallholder farmers.
Looking Ahead: A Collective Path to Sustainability
As the regulatory landscape continues to evolve, the need for agility, agricultural innovation, and collaboration has never been greater. BeyondTraceability Talks serves as a crucial platform for fostering dialogue, sharing best practices, and developing actionable strategies for sustainable growth. Moving forward, all industry players—governments, businesses, and non-profits—must remain proactive in ensuring that Indonesia’s agricultural sector remains competitive and compliant in global markets.
At KOLTIVA, we remain committed to supporting this transition by providing scalable, data-driven solutions that empower producers, strengthen supply chain integrity, and uphold sustainability commitments. The journey toward compliance is complex, but through collaboration and technology, we can drive meaningful impact and create a resilient agricultural ecosystem for generations to come.
References:
RSM, 2024. Regulatory Compliance and Agricultural Sustainability in Indonesia.
Mongabay, 2023. Ensuring Smallholder Inclusion in the EUDR-Compliant Supply Chain.
