Indonesia Asks EU to Adjust Palm Oil Policies

KBRN, Jakarta: Indonesia asked the European Union (EU) to adjust its palm oil policies in line with the World Trade Organization (WTO) provisions. It was stated by the Second Deputy of the Indonesian Permanent Representative to the United Nations (UN), WTO, and Other International Organizations, Nur Rachman Setyoko.

Previously, the WTO Dispute Settlement Body had adopted the final report of Indonesia's trade dispute with the EU regarding the commodity. The WTO panel reported that the EU, through its trade policies, has harmed palm oil-based biofuel from Indonesia.

The panel also found that the EU failed to review data to determine the high-risk palm oil land conversion biofuels category. Therefore, the EU must adjust its policies to the WTO ruling delivered on Monday (24/2/2025) in Geneva, Switzerland.

"Referring to the WTO Panel's recommendations, the EU needs to adjust its policies regarding palm oil commodities," Rachman said on Tuesday (26/2/2025).

The policy, he continued, must be in line with WTO agreements, predictability, and fair trade practices in the multilateral trading system. According to Rachman, Indonesia has submitted a number of claims and strong evidence that the EU's steps are inconsistent with the WTO agreement. However, Rachman said Indonesia is ready to dialogue with the EU to reach positive resolutions on the dispute.

"We show that the EU's reasons for climate change, biodiversity, and moral protection are unrelated to the policy... We will monitor the implementation closely and encourage rapid compliance," he said.

Russia, Brazil, and St. Vincent and the Grenadines support Indonesia's stance in its palm oil dispute with the EU. They say the EU's policies are seen as targeting commodities produced by developing and less developed countries under the pretext of protecting the environment.