Indonesia brings biodiesel issue to WTO

Indonesia has sent a letter to the World Trade Organization (WTO) to challenge the European Union decision to impose anti-subsidy import duties (BMAS) of 8-18 percent on Indonesian biodiesel, Indonesian Trade Minister Enggartiasto Lukita has said.


"We have submitted a letter of objection. We sent the letter no later than today," Lukita said after the Annual Session of the Regional Representative Council (DPD) at the complex of the House of Representatives, Jakarta, Friday. Lukita was reluctant to disclose the points referred to in the letter.

"There is a 15-day deadline for submitting a letter of objection, and we have conveyed the letter from the businessman as well," he said.

Import duty on Indonesian biodiesel had gone into effect from August 14, 2019, and was applicable for the next four months. The European Commission may extend the term of the policy to five years.

Enggartiasto emphasized that the Indonesian government would implement a similar policy by imposing a tariff of 20 to 25 percent on dairy products from the European Union.

However, the policy would require further research, she said.

Enggartiasto suggested to importers that they look for other suppliers in countries besides the European Union.

"I have asked dairy product importers to approach other suppliers, such as the United States, India, Australia or New Zealand. If necessary, we will facilitate the business-matching," the trade minister said.

Biodiesel exports to EU significantly increased from US$116,7 million in 2017 to US$532,5 million in 2018. But in 2019 the exports from Indonesia to EU decreased from those in 2018.

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