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Jakarta Post

What's wrong with EU biodiesel antidumping act?

  • Paul Erwin
    Paul Erwin

    Lawyer and partner at Evangeline & Partners

Jakarta   /   Thu, March 1, 2018   /  01:50 pm
What's wrong with EU biodiesel antidumping act? Valuable commodity: A worker loads oil palm fruits onto a truck during harvest season at an oil palm plantation owned by PT Wanasawit Subur Lestari in Pangkalan Bun, Central Kalimantan, in December 2015. (JP/Dhoni Setiawan)

The European Union through its commission has enacted an antidumping policy and said Indonesian and Argentinean biodiesel producers have been dumping in the EU. The policy levies extra duties on Indonesian biodiesel by margins of between 8 percent and 23 percent. The EU has put forward several reasons for the move, stressing two in particular. The first is the claim that the Indonesian domestic market is distorted. The other is that the export tax system treats biodiesel and CPO differently. The EU claimed that Indonesia’s biodiesel market was heavily regulated by the government, because Pertamina (a state-owned enterprise) bought most of the biodiesel produced by the sampled companies at the export reference price (HPE) of biodiesel, which is released by the Trade Ministry. This prompted the EU to conclude that the market was distorted and not in line with the “ordinar...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.