Indonesia Pressures EU as Deadline Looms in WTO Palm Oil Dispute

RRI.CO.ID, Jakarta - The Indonesian government has formally called on the European Union (EU) to immediately implement the World Trade Organization (WTO) Dispute Settlement Panel’s ruling on the palm oil case (DS593: EU-Palm Oil).

Tuesday, February 24, 2026, marked the end of the 12‑month “reasonable period of time” (RPT) granted to the EU to adjust its policies in line with WTO provisions. Indonesia is monitoring whether Brussels has removed discriminatory measures against palm oil‑based biofuels.

Trade Minister Budi Santoso, known as Busan, said Indonesia is focusing on the EU’s Indirect Land Use Change (ILUC) policy under the Renewable Energy Directive II (RED II). The WTO ruled on January 10, 2025, that the regulations discriminated against Indonesian palm oil compared with other biofuels.

“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,” Minister Busan said in Jakarta on Tuesday, as quoted on the ministry’s official website.

He explained that the WTO decision provided legal clarity, stating that the EU’s stance violated the principle of non‑discrimination by treating Indonesian palm oil differently from biofuels produced in Europe or other countries.

During the WTO Dispute Settlement Body meeting on January 27, 2026, the EU reported that its policy adjustments were not yet complete. In response, Indonesia has prepared several strategies to safeguard national interests.

“Indonesia has prepared various scenario options if, at the end of the RPT, the EU has not shown full compliance. The government is ready to engage in discussions with the EU to ensure legal and technical preparedness if further steps are required,” Minister Busan said.

He added that the approach reflects Indonesia’s commitment to protecting national interests while maintaining market access for palm oil products in Europe. The Trade Ministry is coordinating with industry associations and stakeholders to evaluate the impact of EU regulations and ensure certainty for exporters.

“Indonesia supports the global sustainability and energy transition agenda. However, sustainability policies cannot be used as a basis for measures that conflict with the fundamental principle of non‑discrimination in the multilateral trading system,” Minister Busan said. ***