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Indonesia Urges EU Compliance with WTO Ruling in Palm Oil Dispute



Doc. Special/ndonesia’s Minister of Trade, Budi Santoso.
Indonesia Urges EU Compliance with WTO Ruling in Palm Oil Dispute

InfoSAWIT, JAKARTA – The Indonesian government has urged the European Union (EU) to immediately comply with the World Trade Organization (WTO) Dispute Settlement Panel ruling related to the palm oil dispute (DS593: EU–Palm Oil), following the expiry of the 12-month reasonable period of time (RPT) on Tuesday (Feb 24, 2026).

Indonesia’s Minister of Trade, Budi Santoso, said the government will continue monitoring and evaluating policy adjustments undertaken by the EU, particularly those concerning the Indirect Land Use Change (ILUC) provisions under Directive (EU) 2018/2001 or Renewable Energy Directive II (RED II).

“We urge the EU to comply with the WTO Panel ruling so that market access for Indonesian palm oil products can be restored promptly,” Santoso said, as reported by InfoSAWIT on Thursday (Feb 26, 2026).

The WTO ruling issued on Jan 10, 2025 found that EU policies discriminated against Indonesia’s palm oil-based biofuels compared to non-palm alternatives produced domestically or by other countries, violating the WTO’s non-discrimination principles.

At the WTO Dispute Settlement Body (DSB) meeting on Jan 27, 2026, the EU was reported to have yet to complete the necessary policy adjustments. In response, Indonesia is preparing further legal and technical measures while opening dialogue with the EU to ensure effective dispute resolution and business certainty for the national palm oil industry, including smallholders. (T2)

 

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