Recently, the World Trade Organization (WTO) made a final ruling on Indonesia's appeal against the EU's restrictions on the use of palm oil in biofuels. After a detailed review, the WTO expert group basically maintained the EU's restrictive measures, but at the same time pointed out some shortcomings in the EU's preparation, publication, and implementation of these measures.

As the world's largest producer of palm oil, Indonesia has been actively promoting the application of palm oil in the global market, especially in the field of biofuels. However, the Renewable Energy Directive (RED II) implemented by the European Union since 2018 has imposed strict restrictions on the eligibility of palm oil biofuels and plans to completely cancel their eligibility by 2030. This measure has sparked strong dissatisfaction from Indonesia, which filed a complaint with the WTO in 2019 requesting an expert panel to review it.

The core of this dispute lies in the EU's questioning of the sustainability of palm oil production. The EU believes that the production process of palm oil is often accompanied by environmental issues such as deforestation, loss of biodiversity, and increased greenhouse gas emissions, which goes against the EU's commitment to promoting green, low-carbon, and sustainable development goals. Therefore, the EU has decided to promote the development of more environmentally friendly and sustainable energy alternatives by restricting the use of palm oil biofuels.

However, Indonesia insists that palm oil production is not unsustainable and points out that the EU's restrictive measures are actually protecting its own biofuel industry, which constitutes an unfair trade barrier for developing countries. Indonesia stated that palm oil, as an efficient and economical source of energy, is of great significance in promoting global energy diversification and ensuring energy security. Meanwhile, Indonesia also emphasizes that it has taken strict environmental measures in palm oil production to ensure its sustainability.

In this WTO ruling, the expert panel basically supports the EU's position, believing that its restrictions on palm oil biofuels are reasonable to some extent. However, the group also pointed out some procedural issues in the implementation of these measures by the EU, such as a lack of transparency and sufficient consultation with relevant stakeholders in the preparation, release, and implementation process of the measures. These issues may have a certain negative impact on the EU's trade policy and trigger concerns and dissatisfaction in other countries.

Although the WTO ruling is an unfavorable outcome for Indonesia, the Indonesian side has not given up. Indonesia stated that it will continue to monitor the implementation of EU restrictions on palm oil biofuels and reserves the right to take further legal action. Meanwhile, Indonesia will also strengthen cooperation with other palm oil producing countries to jointly promote the application and recognition of palm oil in the global market.