Indonesia’s Ministry of Trade is confident that the European Union (EU) will comply with a World Trade Organization (WTO) ruling that favored Indonesia in its dispute over countervailing duties on biodiesel exports, reports Indonesia Business Post.
The case, registered as DS618, centered on the EU’s Renewable Energy Directive II (RED II), which Indonesia argued discriminated against crude palm oil. The WTO panel sided with Indonesia, and the EU has agreed to amend RED II by February 24, 2026.
“We expect the European Union to respond sensibly and fairly to this ruling. We are optimistic the EU will implement the WTO decision on biodiesel,” said Djatmiko Bris Witjaksono, Director General of International Trade Negotiations, on Thursday, August 28, 2025.
The WTO found that the EU’s reasoning for imposing duties ranging from 8 to 18 percent on Indonesian biodiesel was not supported by sufficient evidence and recommended that the measures be adjusted. Under the ruling, the EU has fifteen months to comply, meaning the duties must be removed by November 22, 2026.
Djatmiko described Indonesia’s win as a signal to its trading partners to act carefully when drafting trade measures related to Indonesian commodities, stressing that all WTO members are obliged to ensure their policies are consistent with international trade rules.
Trade Minister Budi Santoso echoed this view, calling the ruling proof of Indonesia’s consistent compliance with global trade regulations, in contrast to the EU’s accusations. He said the WTO panel dismissed the EU’s claim that Indonesia pushed palm oil producers to sell raw materials at artificially low prices for the benefit of biodiesel companies. It also concluded that Indonesia’s export taxes and levies on palm oil could not be treated as subsidies, and that the European Commission had failed to show any real harm to European biodiesel producers, overlooking other factors that affect the market.
“With these findings, the WTO made it clear that the EU’s countervailing duties on Indonesian biodiesel were not based on solid evidence,” Budi said.
