Indonesia Urges EU to Comply with WTO Palm Oil Ruling

RRI.CO.ID, Jakarta - Indonesian Government urges the European Union (EU) to immediately implement the ruling of the World Trade Organization (WTO) Dispute Settlement Panel regarding the palm oil dispute (DS593: EU-Palm Oil).

Indonesian Minister of Trade, Budi Santoso, emphasized that his party will continue to monitor and evaluate the adjustment measures taken by the EU. These adjustments concern the Indirect Land Use Change (ILUC) policy within the framework of Directive (EU) 2018/2001, or the Renewable Energy Directive II, along with its implementing regulations.

"We urge the EU to immediately comply with the WTO Panel ruling so that market access for Indonesian palm oil products to the EU can be restored promptly," Budi Santoso said in a statement in Jakarta on Tuesday, 24 February 2026.

Throughout the implementation period, Indonesia has closely monitored the EU's policy adjustment process. Following the end of this period, the Government of Indonesia will conduct a comprehensive assessment covering regulatory aspects, methodology, and the impact on trade. This is to ensure that the EU truly complies with the WTO Panel ruling by eliminating all forms of discrimination against Indonesian palm oil products.

Minister Budi explained that the WTO ruling in the DS593 dispute on January 10, 2025, stated that the EU's policy had discriminated against palm oil-based biofuel products from Indonesia compared to non-palm oil biofuel products produced by the EU or other countries. This ruling provides legal certainty that the EU's policy contradicts the principle of non-discrimination in the global trading system.

The European Union on Tuesday, February 24, 2026, has passed the 12-month implementation period, or Reasonable Period of Time (RPT), for them to adjust its policies to comply with WTO rules.

In a regular meeting of the WTO Dispute Settlement Body (DSB) on January 27, 2026, the EU reported that the process of adjusting policies to accommodate the WTO ruling had not been fully completed. In response, the Government of Indonesia has prepared various follow-up measures and opened avenues for dialogue with the EU to ensure the readiness of steps from both legal and technical perspectives.

"Indonesia has prepared various scenario options if, by the end of the RPT, the EU has not demonstrated full compliance. The Government of Indonesia is always ready to discuss with the EU to ensure the readiness of legal and technical aspects if further steps are required," Budi said.

According to him, the prepared approach reflects Indonesia's commitment to protecting national interests while maintaining sustainable market access for Indonesian palm oil products to the EU. The government will coordinate closely with businesses and industry associations to ensure the case is handled effectively and to provide business certainty for the national palm oil industry.