JAKARTA, March 7 (Reuters) - Indonesia's trade ministry said on Saturday that the government will file a suspension-of-concessions request against the European Union at the World Trade Organization's
Indonesia to File WTO Suspension of Concessions Against EU over Palm Oil Dispute
Indonesia's Response to EU's Palm Oil Policy and WTO Ruling
JAKARTA, March 7 (Reuters) - Indonesia's trade ministry said on Saturday that the government will file a suspension-of-concessions request against the European Union at the World Trade Organization's (WTO's) dispute settlement body, citing the block's failure to meet a WTO ruling in a palm oil case.
Key Details of the Suspension Request
Here are the details:
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EU's Non-Compliance with WTO Ruling
"This step is taken after the EU could not meet the deadline to adjust its policy or was not fully compliant with the ruling and recommendation of the palm oil dispute settlement body," Trade Minister Budi Santoso said in a statement.
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Scope of Concession Suspension
The suspension of concession will be focused on trade in goods, Budi said, adding that the government has not ruled out concession suspension in other sectors.
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Indonesia's Approach to Calculating Losses
"We will ensure that the losses are thoroughly calculated and the cases are handled effectively, while maintaining bilateral relations with the EU," Budi said.
Background: WTO Panel Findings
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WTO Panel Decision in Favor of EU
In 2025, a WTO panel found largely in favour of the EU in a case brought by Indonesia against the bloc's restrictions on palm oil-based biofuel.
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Implications for Palm Oil-Based Diesel
Biofuel Classification and Phase-Out Timeline
The panel ruled that palm oil-based diesel would not be considered a biofuel and its use in transport fuel would effectively be phased out between 2023 and 2030. However, the panel did find fault in the way the EU had prepared, published and administered its measures.
Reporting and Editorial Information
(Reporting by Bernadette Christina; Editing by Himani Sarkar)
