The Indonesian government has asked the European Union (EU) to immediately implement the World Trade Organization (WTO) Dispute Settlement Panel ruling on the palm oil dispute (DS593: EU-Palm Oil).
Tuesday, February 24, 2026, marks the end of the 12 month implementation period, or reasonable period of time (RPT), for the EU to adjust policies and regulations deemed inconsistent with WTO provisions.
Minister of Trade Budi Santoso said that the government will continue to monitor and evaluate various adjustments made by the European Union. These adjustments specifically relate to the Indirect Land Use Change (ILUC) policy within the framework of Directive (EU) 2018/2001, or Renewable Energy Directive II, and its implementing regulations.
"We ask the EU to immediately comply with the WTO Panel's ruling so that market access for Indonesian palm oil products in the EU can be restored quickly," Budi said in a press statement as quoted on Thursday, February 26, 2026.
After the implementation period ends, Indonesia will conduct a comprehensive assessment, including regulatory aspects, methodology, and trade impacts. This is to ensure the EU has complied with the WTO Panel's ruling by eliminating discriminatory treatment of Indonesian palm oil products.
Budi cited that the WTO ruling on the DS593 dispute on January 10, 2025, stated that the EU's policy discriminated against Indonesian palm oil-based biofuel products, compared to non-palm oil biofuel products produced in the EU and countries other than Indonesia. The WTO ruling provided legal clarity that the EU's policy was inconsistent with the WTO's principle of non-discrimination.
Furthermore, at the regular session of the WTO's Dispute Settlement Body (DSB) on January 27, 2026, the EU reported that policy adjustments to accommodate the WTO ruling had not been completed.
Therefore, the Indonesian government is preparing further efforts and is ready to open a dialogue with the European Union to ensure legal and technical readiness.
"To ensure legal and technical readiness should further action be required," he said.
According to Budi, the prepared approach reflects Indonesia's commitment to protecting national interests while maintaining sustainable market access for Indonesian palm oil products to the EU.
Indonesia will coordinate closely with all stakeholders, including business actors and associations, to ensure effective case handling and provide business certainty for the national palm oil industry.
"Indonesia supports the sustainability agenda and the global energy transition. However, sustainability policies cannot be used as a basis for implementing measures that contradict the fundamental principle of non-discrimination in the multilateral trading system," he said.
