Indonesia Urges European Union to Implement WTO Ruling on Palm Oil Dispute

Jakarta (ANTARA) – The Indonesian government is urging the European Union (EU) to immediately implement the ruling of the World Trade Organization’s (WTO) Dispute Settlement Panel regarding the palm oil dispute (DS593: EU-Palm Oil). In an official statement in Jakarta on Wednesday, Minister of Trade Budi Santoso said that Tuesday (24 February) marked the end of the 12-month implementation period for the EU to adjust its policies and regulations, which were deemed inconsistent with WTO provisions. According to him, the Indonesian government will continue to monitor and evaluate the various adjustment measures taken by the EU, particularly regarding the Indirect Land Use Change (ILUC) policy within the framework of Directive (EU) 2018/2001, or 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 to the EU can be restored promptly,” said Budi. After the implementation period ends, the government will conduct a comprehensive assessment, covering regulatory, methodological, and trade impact aspects, to ensure that the EU has fully complied with the WTO Panel’s ruling by eliminating discriminatory treatment of Indonesian palm oil products. Budi explained that the WTO ruling on the DS593 dispute on 10 January 2025 stated that the EU’s policies had discriminated against Indonesian palm oil-based biofuel products compared to non-palm oil biofuel products produced in the EU and other countries. This ruling has provided legal clarity that the EU’s policies are not in line with the WTO’s principle of non-discrimination. Furthermore, during a regular session of the WTO’s Dispute Settlement Body (DSB) on 27 January 2026, the EU reported that it had not yet completed the adjustments to its policies to accommodate the WTO’s decision. The government has prepared various scenario options in case the EU does not demonstrate full compliance by the end of the implementation period, including discussions to ensure the readiness of legal and technical aspects. According to Budi, the prepared approach reflects Indonesia’s commitment to protecting national interests while maintaining the sustainability of market access for Indonesian palm oil products to the EU. In addition, the government will coordinate closely with all stakeholders, including businesses and associations, to ensure that the handling of the case is effective and provides business certainty for the national palm oil industry. “Indonesia supports the global sustainability and energy transition agenda. However, sustainability policies cannot be used as a basis for implementing measures that are contrary to the fundamental principle of non-discrimination in the multilateral trading system,” he added. Copyright © ANTARA 2026 It is strictly prohibited to take content, crawl or automatically index for AI on this website without written permission from the ANTARA News Agency.