Indonesia Celebrates WTO Ruling Against EU Palm Oil Biofuel Curbs

TheIndonesia.co - Indonesia has welcomed a recent World Trade Organization (WTO) ruling that found the European Union (EU) discriminated against Indonesian palm oil-based biofuel, imposing unfair restrictions.

Coordinating Minister for Economic Affairs Airlangga Hartarto celebrated the decision, according to Antara News Agency, stating, "We won the lawsuit at the WTO for palm oil-based biofuel. This ruling proves that Europe discriminated against Indonesia in its biofuel policies."

The case stemmed from the EU's decision in 2019 to phase out palm oil-based biodiesel due to concerns about deforestation. The WTO ruling, issued last week, found that the EU's policy violated WTO rules, including failing to adequately assess the environmental impact of palm oil-derived biofuels.

Hartarto emphasized that the ruling highlights the legitimacy of biodiesel from crude palm oil, countering the EU's preference for biofuels from crops like rapeseed and soybean.

The WTO also criticized the EU for discriminatory tax incentives that benefit soybean and rapeseed oil-based biofuels over palm oil. The ruling, expected to be adopted in 60 days, will become binding unless appealed.

This decision is seen as a significant step in Indonesia’s ongoing opposition to EU policies perceived as unjust, including the EU’s anti-deforestation regulation (EUDR). Hartarto expressed confidence that the ruling would aid Indonesia’s efforts in combating the EUDR, which requires palm oil exporters to prove their products are deforestation-free.

Looking ahead, the ruling could also help accelerate Indonesia’s negotiations with the EU on the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA).