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Jakarta Post

Indonesia in fight with EU over biofuel, again

  • Rachmadea Aisyah

    The Jakarta Post

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Jakarta   /   Mon, July 29, 2019   /  04:59 pm
The Jakarta Post Image
A 20-percent blended biodiesel (B20) gas pump. (Courtesy of/The Indonesian Palm Oil Producers Association (Gapki) )

Indonesia is facing a fresh round of accusations over its management of its palm oil industry from one of its biggest importers, the European Union (EU), adding to the prolonged feud between the two trading partners over the commodity.  On July 23, the European Commission (EC) proposed imposing temporary duties ranging from 8 to 18 percent on imports of biodiesel produced by Indonesian companies. The companies include PT Ciliandra Perkasa, which faces an 8 percent import duty, PT Musim Mas, which faces a 16.3 percent duty, and PT Wilmar Bioenergi Indonesia, which faces an 18 percent duty. One type of biodiesel is made from palm oil. The duties have been proposed through an EC provisional measure and follow allegations that palm oil companies in Indonesia receive various incentives and special subsidies from the government. These alleged incentives include subsidies f...