Posted in

Indonesia calls on EU to enforce WTO decision on palm oil dispute

Jakarta (ANTARA) – Indonesia has called on the European Union (EU) to promptly implement the World Trade Organization (WTO) Dispute Settlement Panel ruling in the palm oil case, DS593: EU–Palm Oil.In an official statement issued on Wednesday, Trade Minister Budi Santoso said Tuesday, February 24, marked the end of the 12-month reasonable period of time granted to the EU to adjust policies and regulations found to be inconsistent with WTO provisions.He said the Indonesian government will continue to monitor and evaluate the EU’s policy adjustments, particularly those related to the Indirect Land Use Change policy under Directive (EU) 2018/2001, known as Renewable Energy Directive II, and its implementing regulations.“We urge the EU to immediately comply with the WTO Panel’s ruling so that market access for Indonesian palm oil products in the EU can be restored swiftly,” Santoso said.Following the end of the implementation period, the government will conduct a comprehensive assessment covering regulatory aspects, methodology, and trade impacts to ensure the EU has complied with the WTO ruling by eliminating discriminatory treatment against Indonesian palm oil products.The minister noted that the WTO ruling on the DS593 dispute, issued on January 10, 2025, found that the EU’s policy discriminated against Indonesian palm oil-based biofuel products compared with similar products from the EU and other countries.The ruling provides legal clarity that the EU’s measures are inconsistent with the WTO’s non-discrimination principle.At the regular meeting of the WTO’s Dispute Settlement Body on January 27, 2026, the EU reported that its policy adjustments to comply with the ruling were still incomplete.Santoso said the government has prepared various scenarios should the EU fail to demonstrate full compliance by the end of the reasonable period of time, including measures to ensure legal and technical preparedness.He added that the approach reflects Indonesia’s commitment to safeguarding national interests while maintaining sustainable market access for palm oil products in the EU.The government will coordinate with stakeholders, including industry players and associations, to manage the process effectively and ensure business certainty for Indonesia’s palm oil sector.“Indonesia supports the sustainability agenda and the global energy transition. However, sustainability policies cannot be used to justify measures that violate the non-discrimination principle in multilateral trade,” he said.