JAKARTA, Indonesia: Indonesia has urged the European Union (EU) to immediately comply with the World Trade Organisation (WTO) Panel ruling last year in the palm oil dispute, in order to restore market access for Indonesian palm oil products.
Trade Minister, Budi Santoso, said Tuesday (Feb 24) marked the end of the 12-month implementation, or reasonable period of time (RPT), granted to the EU to adjust its policies and regulations into conformity with WTO provisions following the panel’s ruling.
“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 promptly restored,” he said in a statement today.
Budi explained that the WTO ruling on Jan 10, 2025, found that the EU policy had discriminated against Indonesia’s palm oil-based biofuel products compared with biofuel products produced in the EU and other countries, providing legal clarity that the EU policy violated the WTO’s principle of non-discrimination.
However, during a regular meeting of the WTO Dispute Settlement Body on Jan. 27, the EU reported that its policy adjustments to accommodate the WTO decision had not yet been completed.
Therefore, he said, the Government of Indonesia has prepared various follow-up measures and stands ready to open dialogue with the EU to ensure readiness from legal and technical aspects.
Budi said the government would continue to monitor and evaluate the EU’s adjustment measures, particularly those related to the Indirect Land Use Change (ILUC) policy under Directive (EU) 2018/2001, or Renewable Energy Directive II, along with its implementing regulations.
According to him, the approach reflects Indonesia’s commitment to protecting national interests while maintaining sustainable market access for its palm oil products to the EU.
“Indonesia supports the global sustainability and energy transition agenda. However, sustainability policies cannot be used as a basis to implement measures that are contrary to the fundamental principle of non-discrimination in the multilateral trading system,” he added. – BERNAMA
