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View all search resultsRI poised for end to EU's discriminatory palm oil rules as WTO deadline passes
Following the expiry of the Feb. 24 implementation deadline, the government is preparing to assess the EU's compliance with a 2025 WTO dispute ruling over its discriminatory policies against Indonesian palm oil.
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A truck drives along a road through an oil palm plantation in Muaro Jambi, Jambi, on Nov. 20, 2024. (Antara/Wahdi Septiawan)
T
he government is urging the European Union to comply with a World Trade Organization ruling on the bloc’s discriminatory policies against Indonesian palm oil, after the 12-month implementation period concluded on Tuesday.
Trade Minister Budi Santoso confirmed the expiry of the reasonable period of time (RPT) that the WTO dispute settlement panel had granted to the EU to amend regulations inconsistent with global trade norms.
Jakarta is now poised to scrutinize Brussels’ policy adjustments, specifically regarding the bloc’s controversial Indirect Land Use Change (ILUC) rules in the Renewable Energy Directive II (RED II), as well as related implementing regulations.
“We urge the EU to immediately comply with the WTO panel ruling so that market access for Indonesian palm oil products in the EU can be quickly restored,” Budi said in a statement on Feb. 24.
The WTO ruling, issued on Jan. 10 last year in dispute case DS593, found that the EU policies unfairly discriminated against biodiesel made from Indonesian palm oil, determining that they treated Indonesian biofuels less favorably than similar products from the EU and other countries and thereby violated the WTO’s principle of nondiscrimination.
Jakarta had been monitoring developments in Brussels over the 12-month period to implement the WTO ruling, adopted on Feb. 24, 2025.
As the RPT has now expired, the government will assess whether the EU has eliminated its discriminatory rules. This evaluation will cover any regulatory changes, methodological adjustments and tangible impacts on trade flows.
