Government Urged to Counter Black Campaigns Against Biodiesel After WTO Ruling

Jakarta: Indonesia has won trade dispute DS618 at the World Trade Organization (WTO) regarding the imposition of countervailing duties on Indonesian biodiesel products. The European Union had previously accused Indonesia’s palm oil–based biodiesel policy of being subsidized.

The Indonesian Biofuel Producers Association (Aprobi) said the victory strengthens Indonesia’s position in countering the long-standing black campaign against the national palm oil industry in global markets.

Catra De Thouars, Vice Chairman for Promotion and Communication at Aprobi, stated that WTO’s support is good news for domestic industry as well as Indonesia’s global trade standing. He said the ruling paves the way for fairer international trade.

“This is justice, especially for palm oil–based products that have long been subject to negative campaigns,” he noted in a statement received by Media Indonesia on Tuesday, August 26, 2025.

Catra explained that the dispute stemmed from the EU’s policy of imposing anti-dumping and countervailing duties on Indonesian biodiesel between 2018 and 2019. In response, the government, together with biofuel and palm oil industry stakeholders and legal experts, brought the case to the WTO in 2023.

“Without the support of all parties, government, industry, and legal experts, it would have been very difficult to face Europe’s strict opposition,” he said.

He added that the victory offers a breath of fresh air for the industry to keep fighting. However, he warned that the EU is unlikely to remain idle and may take new measures to block Indonesian biodiesel. For this reason, both the government and industry players must stay vigilant and prepare further strategies.

“With the WTO’s support, the EU will certainly not stand still. We must be ready for their next move,” Catra stressed.

New market opportunities

Regarding exports, Catra assessed that the WTO decision indeed opens new market opportunities for Indonesian biodiesel in Europe. However, the current main focus of both the government and industry remains on domestic renewable energy programs, such as the implementation of B40 (40 percent biodiesel blend in diesel fuel) and plans for B50 trials.

“We will continue to prioritize domestic distribution, but with this WTO decision, we are happy that new markets will open,” he said.

Looking ahead, he emphasized that Indonesia’s struggle does not end with dispute DS618. Other challenges remain, such as the European Union Deforestation Regulation (EUDR).

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