Jakarta — Indonesia’s government said on Monday it will encourage the country’s palm oil companies to file lawsuits against the EU if the bloc goes ahead with a plan to phase out use of the commodity in renewable transport fuel.
Indonesia in recent weeks also pledged to launch a World Trade Organisation challenge against the EU and said the government is “examining bilateral relations with member states that have been most supportive” of the European rules. Malaysia, the world’s second-largest palm producer, has also threatened a WTO challenge against the EU.
The EU has concluded that palm oil is a high-risk crop after finding that 45% of palm cultivation expansion during 2008-2015 took place in high carbon stock area, far higher compared to rival crops soybean and rapeseed.
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