Indonesia is sharply escalating its legal confrontation with the European Union by requesting “retaliatory authority” from the WTO, following the EU’s failure to meet the February 24, 2026 compliance deadline regarding palm-oil-based biofuel regulations under case DS593. By invoking Article 22.2 of the WTO Dispute Settlement Understanding, Jakarta seeks authorization to suspend concessions against the EU in order to offset what it considers substantial economic damages caused by restrictive EU policies such as the Renewable Energy Directive II (RED II) and the EU Deforestation Regulation (EUDR). Indonesian industry groups, including the Indonesian Palm Oil Association (GAPKI) and the Indonesian Biofuel Producers Association (APROBI), strongly support the government’s position, emphasizing the severe financial impact these regulations have had on national export revenues. The move carries significant commercial and diplomatic implications, especially as Indonesia and the EU continue negotiating the Comprehensive Economic Partnership Agreement (CEPA). While taking a firm legal stance, Jakarta remains cautious about maintaining overall diplomatic stability, even as it considers potential cross‑retaliation in sectors such as services or intellectual property. With the 2025 WTO panel having already determined that the EU’s classification of palm oil as “high ILUC-risk” was discriminatory, Indonesia’s patience appears to be nearing its limit. A favorable WTO decision authorizing retaliation could reshape trade flows between Southeast Asia and Europe and heighten uncertainty for European companies operating in Indonesia.Source: https://indonesiabusinesspost.com/6269/markets-and-finance/indonesia-escalates-wto-legal-battle-against-eu-trade-conflict-risks-loom (ICE GIACARTA)

Fonte notizia: Indonesia Business Post, 9 March 2026