Indonesia Wins WTO Case, Validates CPO-Based Biodiesel

Bid TIK Polda Kepri/”>Bid TIK Polda Kepri – Jakarta. Indonesia’s victory at the World Trade Organization (WTO) confirms global recognition of palm oil-based biodiesel (CPO), according to Coordinating Minister for Economic Affairs Airlangga Hartarto.

The WTO Panel Report issued on 10 January 2025, ruled that the European Union (EU) discriminated against Indonesian palm oil and biofuel by imposing unfair trade barriers.

“This victory proves the EU’s discriminatory actions against Indonesia’s palm oil and biodiesel,” Minister Airlangga said on Friday (17/1/2025), emphasizing that it results from years of challenging the EU’s biased policies against CPO.

The WTO found flaws in the EU’s evaluation processes, particularly in labeling palm oil as a high-risk commodity for indirect land use change (ILUC). The report also criticized France’s tax incentives that favored biofuels from rapeseed and soybean while excluding palm oil.

The EU must adjust its regulations within 60 days to comply with WTO standards. Airlangga highlighted the importance of this ruling for 41% of Indonesia’s smallholder palm oil farmers, ensuring fair treatment in global trade.

“This strengthens our position against the EU’s discriminatory policies, including the Deforestation Regulation,” Minister Airlangga said, as quoted by antaranews.com.