The Palm Scribe

Indonesia Strikes Back at European Union Over Biodiesel

The European Union (EU) will annul the anti-dumping tax between 8,8% and 23,3% on Indonesia biodiesel product after Indonesia won an appeal at European Court of Justice.

Foreign Trade Director General, Oke Nurwan said “Stakeholders are able to export biodiesel without facing an additional anti-dumping tax fee. While for those who do not file the lawsuit should wait for the result from Dispute Settlement Body (DSB),” he said in the Ministry of Trade press release on Wednesday (21/3).


This is Indonesia second consecutive victory over the EU on anti-dumping charges. Its first victory was in January.

There are several reasons why Indonesia won the case, first, EU has not applied the data which has already been addressed by Indonesian exporters to determine the cost of production. Second, EU has not implemented the Indonesia local cost for dumping basic margin calculation. Third, the EU has been overly strict on Indonesia biodiesel industry profit. Fourth, the method to determine the export cost for one of the Indonesian exporter is not implemented by the associated terms. Fifth, the EU applied higher tax cost than dumping margin. Sixth, the EU could not validate that Indonesian biodiesel import has a backwash toward European domestic biodiesel industry.

The consequence of dumping trade issue by EU induced Indonesia biodiesel export value decline drastically from US$1,4 billion in 2011 to US$68 million in 2015.

Indonesian officials, however, predict this value would increase at US$1,7 billion by 2022.

This achievement is also delivering a positive signal for the development of the Asia palm oil industry, especially for Malaysia. Since Wednesday (21/3) Malaysia’s quota for palm export was increasing by 15,3% shifting to 913.091 ton from 791.992 ton. Malaysia also setting the export fee for 5% after nullifying it since January 2018.

Besides impacting the palm oil regional market, it also solidifies Indonesia position to enter the European market. “This double achievement is giving us a big chance for Indonesia biodiesel export to compete back in the European market,” said Oke.

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