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View all search resultsIndonesia urges EU not to appeal WTO’s biodiesel ruling
The government is urging the European Union not to appeal a recent World Trade Organization (WTO) ruling that supports Indonesian biodiesel exports.
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A man speaks on the phone on April 12, 2022, while entering the World Trade Organization (WTO) headquarters in Geneva. (AFP/Fabrice Coffrini)
T
he government is urging the European Union not to appeal a recent World Trade Organization (WTO) ruling that supports Indonesian biodiesel exports but says the dispute will not get in the way of finalizing a major bilateral trade agreement.
Djatmiko Bris Witjaksono, director general of international trade negotiations at the Trade Ministry, told The Jakarta Post on Aug. 26 that the government would push the European Commission to adopt the ruling “and not appeal”.
“Once it’s adopted, the Indonesian government will then monitor the implementation of the panel’s recommendations,” said Djatmiko.
The EU has been charging countervailing duties of 8 to 18 percent on imports of Indonesian biodiesel since 2019 on the premise of protecting European producers that mainly produce rapeseed-based biodiesel, which is more expensive than palm oil-based fuel.
The tariffs were imposed after an investigation by the Commission concluded that the archipelago’s producers profited from grants, tax benefits and access to raw materials below market prices.
In 2018, before the duties came into force, the EU was Indonesia’s second-largest palm oil export destination, behind only India. The continent is now the third-largest importer of total Indonesian palm oil products, which include biodiesel.
Jakarta brought the case before the WTO in 2023, and the panel for the dispute was constituted by South Africa, Mexico and Belgium.
