- After winning a lawsuit relating to the dumping of biodiesel products by the European Union (“EU”) through the World Trade Organization (“WTO”) forum around a year ago, Indonesia unfortunately finds itself embroiled in another trade dispute with the EU concerning the gradual reduction in the consumption of Crude Palm Oil (“CPO”) products as we move towards 2030, based on EU Renewable Energy Directive II (“RED II”).
- In addition to this ongoing dispute, the EU has also alleged that biofuels which are exported by Indonesia to the EU are being subsidized by the government through the Fund Management Agency for Oil Palm Plantations (“BPDP-KS”) and, as a result, the EU is preparing to impose countervailing duties upon Indonesian biofuels.
- The Indonesian Government is claiming that it is ready to file a lawsuit with the WTO which addresses any discriminatory EU treatment as regards Indonesian CPO and biofuels.
- As a side note, Kanya Lakshmi Sidarta, Secretary General of the Indonesian Palm Oil Association, commented recently that in response to the EU’s measures, the Indonesian Government should try to maximize the utilization of biodiesel domestically through the mandatory B30 program, which obliges all normal fuels to contain 30% biodiesel. (ANT)
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