Jakarta, Indonesia Sentinel — Indonesia has won a major trade dispute against the European Union (EU) at the World Trade Organization (WTO) over countervailing duties imposed on Indonesian biodiesel imports, known as case DS618.
A WTO dispute settlement panel ruled in favor of Indonesia on several key claims, finding that the EU’s duties were inconsistent with the WTO Agreement on Subsidies and Countervailing Measures (ASCM). The ruling, announced on Friday (August 22), recommended that the EU bring its measures into compliance with WTO rules.
In response, Indonesia’s Ministry of Trade urged the EU to immediately revoke the contested duties. “We call on the EU to promptly remove these countervailing duties, which have been found inconsistent with WTO obligations,” Trade Minister Budi Santoso said in Jakarta on Monday (August 25).
According to Budi, the panel rejected the EU’s argument that Jakarta directed palm oil producers to sell raw materials at artificially low prices to benefit biodiesel manufacturers.
It also found that Indonesia’s export taxes and levies on palm oil could not be categorized as subsidies and concluded that the EU had failed to prove that Indonesian biodiesel exports posed a material threat to European producers.
“The WTO panel determined that the EU’s countervailing duties were not based on objective evidence,” Budi said.
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Trade Ministry Secretary General Isy Karim added that Jakarta expects Brussels to respect the ruling and adjust its policies so Indonesia can restore its biodiesel export performance to the EU.
The EU is a key market for Indonesian palm oil and biodiesel. Indonesia, the world’s largest palm oil producer, has long challenged European trade measures targeting its commodity exports.
Coordinating Minister for Economic Affairs Airlangga Hartarto welcomed the WTO decision, calling on the EU to remove the duties as a consequence of the ruling.
“Now it is up to the EU to respond to the WTO panel’s decision,” Airlangga said Saturday. He added that Indonesia remains committed to upholding the ruling through constructive engagement while safeguarding national interests in global trade.
(Raidi/Agung)
