JakartaGlobe-Aug 25, 2025
Indonesia has urged the European Union or EU to lift its biodiesel import curbs after a panel ruling at the World Trade Organization (WTO). Just a few days ago, a WTO panel backed Jakarta’s claims that EU’s countervailing duties on Indonesian biodiesel imports were inconsistent with the organization’s rules in some key aspects. In August 2019, the EU began slapping anti-subsidy duties of 8 percent to 18 percent on imports of biodiesel from Indonesia. The WTO allows countries to impose these duties only if they have done an investigation that proves foreign governments have been subsidizing exported goods. Such duties mainly aim to offset the subsidies, thus providing a level playing field for foreign producers and their local counterparts. An investigation by the European Commission claimed that Indonesian biodiesel producers had been enjoying tons of subsidies, be it through grants, tax benefits or easier access to raw materials — all of which had enabled them to sell their products at a lower price. The countervailing duties prompted Jakarta to sue the EU in 2023. A WTO panel later found that Europe had failed to make an objective examination in their investigation, particularly with regards to whether the imports could inflict material injury on European biodiesel producers. The EU has yet to issue an official statement on the WTO ruling as of writing. However, Trade Minister Budi Santoso already said that Indonesia had already won the case. “We urge the EU to immediately remove the countervailing duties that are inconsistent with WTO’s rules.” Read more at: https://jakartaglobe.id/business/indonesia-urges-eu-to-lift-biodiesel-import-curbs-after-wto-panel-backs-jakarta
