Jakarta moved from words to action by calling for consultations under the Dispute Settlement Mechanism (WTO) on 9 December, the European Commission confirmed to EUROPE on Monday 16 December. The Commission stressed, however, that this decision did not undermine its conviction that Indonesian accusations about trade in palm oil products with the EU are unfounded.
Indonesians are mainly attacking the EU's Renewable Energy Directive, which sets renewable energy targets and sets criteria for determining the contribution of biofuels to the achievement of these targets. The main objective of the delegated act defining feedstocks for biofuel production at high risk of indirect land use change (ILUC), which entered into force at the beginning of June, is to limit the use of palm oil in biodiesel in the EU by 2030, perceived as a cause of massive deforestation in Indonesia (see EUROPE 12300/13, 12213/26).
For Jakarta, the world's largest producer of palm oil, these measures are discriminatory.
But for the EU, "this is an integral part of our green policies", a European Commission spokesman told EUROPE.
"The EU is confident that the measures challenged by Indonesia are in line with WTO obligations". It is therefore ready "to defend this position during the consultations". (Original version in French by Hermine Donceel)