Indonesia Urges EU to Comply with WTO Ruling on Palm Oil Dispute

Indonesia has formally urged the European Union to immediately comply with the World Trade Organization (WTO) ruling in the DS593 dispute concerning palm oil. On February 24, 2026, the EU’s 12-month “reasonable period of time” (RPT) expired, marking the deadline for Brussels to align its policies with WTO rules. Jakarta is now closely monitoring whether the EU will remove what it considers discriminatory measures against palm oil-based biofuels.

In January 2025, the WTO panel found that the EU’s Renewable Energy Directive II (RED II), particularly its Indirect Land Use Change (ILUC) provisions, unfairly discriminated against Indonesian palm oil compared to biofuels produced within Europe or other countries. Indonesia’s Trade Minister emphasized that the ruling provides legal clarity and reaffirmed the principle of non-discrimination under the multilateral trading system.

Indonesia has prepared strategic responses should the EU fail to fully implement the decision, while reiterating its support for global sustainability and energy transition goals—provided they do not undermine fair trade principles.