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Indonesia urged to retaliate 'deadly' EU biodiesel tariffs

"The possible steps vary from appealing the decision at the EU's local courts [...] to challenging the EU at the WTO-DSB," Pradnyawati said, referring to the WTO dispute settlement body.

Made Anthony Iswara (The Jakarta Post)
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Thu, December 12, 2019 Published on Dec. 12, 2019 Published on 2019-12-12T07:59:34+07:00

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A 20-percent blended biodiesel (B20) gas station. A 20-percent blended biodiesel (B20) gas station. (Courtesy of/The Indonesian Palm Oil Producers Association (Gapki) )

I

ndonesian biodiesel and palm oil producers are pressuring the government to be up in arms following the European Union’s five-year biodiesel tariffs, which took effect on Monday.

 

Indonesian Biofuel Producers (Aprobi) chairman Master Parulian Tumanggor said the industry group would push the government to file an objection against the duties with the World Trade Organization (WTO). 

The industry group is “extremely disappointed” with the new tariffs, calling the EU’s accusations of Indonesian government biodiesel subsidies “completely false”, said Master.

“We will fight for it, whether it is through the EU court or the WTO,” APROBI co-chairman Paulus Tjakrawan told The Jakarta Post.

The EU duties, which will remain in place for five years, range from 8 to 18 percent for Indonesian exporters of biofuel made from vegetable oils and animal fats, the European Commission said.

The new measure follows the European Commission’s findings that Indonesian producers sold biodiesel at unfairly low prices due to government grants, tax exemptions and access to raw materials below market prices.

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