Jakarta: The Indonesian government has called on the European Union (EU) not to appeal a recent World Trade Organization (WTO) ruling that supports Indonesian biodiesel exports. Officials said the case would not interfere with efforts to finalize a major bilateral trade deal, reports The Jakarta Post.
Djatmiko Bris Witjaksono, director general of international trade negotiations at the Trade Ministry, told The Jakarta Post on Aug. 26 that Indonesia would press the European Commission to accept the ruling. “We are asking the EU to adopt the panel’s decision and not challenge it further,” he said. “Once it is adopted, the Indonesian government will closely monitor how the recommendations are carried out.”
Since 2019, the EU has imposed countervailing duties of 8 to 18 percent on Indonesian biodiesel imports. The measures were introduced to protect European producers, who mainly use rapeseed oil—a more expensive feedstock than palm oil, which is widely used in Indonesia.
The European Commission said its decision was based on findings that Indonesian biodiesel producers had benefited from subsidies, tax breaks, and access to raw materials at below-market prices.
Before the tariffs were imposed, the EU was Indonesia’s second-largest export market for palm oil, after India. Today, Europe ranks third for total Indonesian palm oil exports, which also include biodiesel.
Indonesia brought the case before the WTO in 2023. The dispute panel was made up of representatives from South Africa, Mexico, and Belgium.
