JAKARTA – The lawsuit filed by the Indonesian government against the  European Union’s (EU) Renewable Energy Directive (RED) II policy at the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) is still in progress. So far, there has been no legal decision taken by the international agency.

The Indonesian government has stated that the EU’s RED II and Delegated Regulation (DR) policy is a discriminatory policy as it only single out the palm oil among other vegetable oils that is not allowed to be used as raw material for biofuel production in Europe.

Natan Kambuno, Director of Trade Defense at the trade ministry, said that the WTO is expected to take a decision during the third quarter 2022.

“We’re waiting for a decision of WTO on the issue. We expect that a final report will be issued after the second quarter this year, possibly around August or September 2022,” Natan told Kontan.co.id on Sunday, 03 July 2022.

Natan said that Indonesia had presented all necessary defenses and arguments regarding the EU’s discriminatory policy against the palm oil. “We’ve been in intensive coordination with all stakeholders,” said Natan.

He said that Indonesia still maintains its position that EU has discriminated palm oil through its RED II and DR policy. EU accused palm oil as the cause of deforestation.

By filing the lawsuit, Indonesia has no intention of opposing the climate change policy of the EU. Indonesia, he said, has the same commitment with the EU in terms of the climate change policy as reflected in the Paris Agreement.

Indonesia hopes that EU and other countries will prioritize cooperation. The issue of environment should not be used for negative campaigns against the palm oil.

“The EU should not apply a disguised discriminatory policy that will actually hinder Indonesia’s efforts of implementing the sustainability principles in Indonesia,” he said.

Source: KONTAN.CO.ID