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Indonesia's government has called on the European Union not to appeal a recent World Trade Organisation (WTO) ruling that backs the country's biodiesel exports. Officials said the case would not affect efforts to finalise a major bilateral trade agreement, according to The Jakarta Post.
Djatmiko Bris Witjaksono, Director-General for International Trade Negotiations at the Ministry of Trade, told the newspaper on 26 August that Indonesia would press the European Commission to accept the ruling. "We are asking the EU to adopt the panel's decision and not appeal it again. Once it is adopted, the Indonesian government will closely monitor how the recommendations are implemented," he said.
Since 2019, the European Union has imposed countervailing duties ranging from 8% to 18% on biodiesel imports from Indonesia. The measures were introduced to protect European producers, who rely mainly on rapeseed oil — a more expensive feedstock compared with the palm oil widely used in Indonesia.
The European Commission said its decision was based on findings that Indonesian biodiesel producers had benefited from tax exemptions, government support and access to raw materials at below-market prices.
Before the duties were imposed, the EU was the second-largest market for Indonesian palm oil exports after India. Today, Europe ranks third for total Indonesian palm oil exports, including biodiesel.
Indonesia brought the case before the WTO in 2023. The dispute panel included representatives from South Africa, Mexico and Belgium.
Source: The Jakarta Post