20 January 2025

Vice Chairman of the Indonesian Employers Association (APINDO) North Sumatra in charge of Agriculture and Plantations, Usli Sarsi welcomed the government's success in proving discrimination by the European Union (EU) in the palm oil trade dispute at the Dispute Settlement Body of the World Trade Organization (WTO).

“We are very happy that the WTO Panel Decision (panel report) links the issue of climate change, as a basis for the European Union not to be arbitrary in imposing discriminatory policies,” Usli Sarsi told Analisa by telephone, Friday (17/1).

The panel's decision, Usli said, stated that the EU discriminated by giving less favorable treatment to biofuels made from palm oil from Indonesia compared to similar products from the EU such as rapeseed and sunflower. The EU also differentiates treatment and gives more benefits to similar products imported from other countries such as soybeans.

In addition, the WTO Panel assessed that the EU failed to review the data used to determine biofuels with high ILUC-risk palm oil land use change categories and there were deficiencies in the preparation and implementation of low ILUC-risk certification criteria and procedures in the Renewable Energy Directive (RED) II.

“The results of the EU panel's decision are required to adjust the policies in the Delegated Regulation which the Panel considers to violate WTO rules,” Usli said.

Usli hopes that the government can continue to monitor changes in EU regulations so that they are in accordance with the decisions and recommendations of the WTO DSB, especially regarding elements of discrimination.

According to Usli, the result of the WTO Panel Decision is expected that market access for Indonesian palm oil products to the EU market which has been difficult to penetrate can be widely opened by conducting various negotiation forums. With the decision, Indonesian palm oil exports to the EU will increase.

Source : Analisa Mingguan, 19 January 2025