Indonesia Secures Partial Victory in WTO Fatty Acid Dispute with EU

Jakarta (ANTARA) - The Ministry of Trade has stated that Indonesia secured a partial victory in the World Trade Organization (WTO) dispute DS622 concerning the European Union’s imposition of anti-dumping duties (BMAD) on imports of fatty acid products from Indonesia. In a statement released on Wednesday, the WTO panel rejected several of the Indonesian government’s primary legal claims, but upheld some technical claims that were filed. This partial victory is contained in the Panel’s Final Report, which was published on 8 July 2026. Minister of Trade Budi Santoso affirmed the government’s commitment to continue safeguarding and defending national export interests. This will be pursued by utilising all available instruments following the WTO panel ruling. “Although the WTO panel only upheld some of our claims, the Government of Indonesia’s main focus now is to move forward by exploring all available strategic alternatives, including trade diplomacy. This effort is being made to ensure that Indonesian fatty acid products do not face detrimental barriers in the European Union market,” Budi said. In its ruling, the panel granted part of Indonesia’s claims regarding inconsistencies in the methodology used by EU authorities to determine the dumping margin. This recognition is considered an important achievement in the fight for fair and rules-based trade. However, several of Indonesia’s substantive arguments were rejected and the ruling did not overturn the overall imposition of the anti-dumping duties. As a follow-up, the Indonesian Government will optimise various strategic alternatives outside the legal mechanism. Budi expressed hope that these steps would support the smooth supply chain of the national downstream palm oil industry and enhance the competitiveness of Indonesian products in the EU and global markets. Meanwhile, Budi still views the WTO panel’s decision as the result of close cooperation between the Government of Indonesia and stakeholders. “The legal efforts and trade advocacy carried out so far are the result of solid teamwork from ministries, the private sector, associations, and international legal experts in Indonesia. We will continue to strengthen this synergy to mitigate the impact of the ruling and secure market access for our key commodities on the global stage,” he said. Dispute DS622 was filed by Indonesia in response to the EU’s imposition of anti-dumping duties on Indonesian fatty acid imports, which were deemed inconsistent with WTO provisions. Budi stressed the need for a swift, measured, and adaptive response from all domestic industry stakeholders. The Ministry of Trade is also continuing to optimise trade diplomacy, economic partnerships, and multilateral and bilateral trade cooperation. “We will conduct in-depth internal consolidation with all national fatty acid industry players. The Government of Indonesia is fully committed to assisting businesses in formulating market adjustment measures to restore and maintain export performance to the European region,” he stated.