Indonesia calls on EU to implement WTO ruling in palm oil dispute

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.

Indonesian Trade Minister Budi Santoso. (Photo: ANTARA/HO-Trade Ministry/rst)
Indonesian Trade Minister Budi Santoso. (Photo: ANTARA/HO-Trade Ministry/rst)

Jakarta (VNA) – Indonesia has called on the EU to promptly implement the World Trade Organisation (WTO) Dispute Settlement Panel ruling in the palm oil case (DS593: EU-Palm Oil), as reported by the national news agency Antara.

In an official statement, Trade Minister Budi Santoso said 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 as quoted by Antara.

Following the end of the implementation period, the Indonesian 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./.

VNA

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