Indonesia Urges EU to Scrap Biodiesel Tariffs After WTO Ruling

Jakarta: The Indonesian government has urged the European Union to lift its anti-subsidy import duties on Indonesian biodiesel following a World Trade Organization (WTO) ruling in favor of Indonesia.

The WTO panel found that the EU’s duties of between eight and 18 percent, imposed since 2019, violated international trade rules.

Trade Minister Budi Santoso said the ruling reflects Indonesia’s strong commitment to upholding international law.

“This victory demonstrates that the Indonesian government consistently abides by international trade rules,” Budi said, as quoted by Channel News Asia on Monday, August 25, 2025.

The dispute began when Indonesia filed a complaint against the EU at the WTO in 2023, challenging the bloc’s duties, which it justified on grounds that Indonesian biodiesel producers benefited from subsidies and tax incentives.

However, the WTO panel ruled that Indonesia’s palm oil export levies and duties did not constitute subsidies, while the EU failed to prove any threat of injury to its biodiesel producers.

Impact on exports

The EU’s measures had a sharp impact on Indonesian biodiesel exports, which plunged from 1.32 million kiloliters in 2019 to just 36,000 kiloliters in 2020. Exports remained depressed, reaching only 27,000 kiloliters in 2024 due to the duties.

Budi reiterated Indonesia’s call for the EU to immediately remove the tariffs, which were deemed inconsistent with WTO regulations.

While the WTO ruling can be appealed, the Appellate Body has been non-operational since 2019 due to a U.S. blockade, effectively strengthening Indonesia’s position in the trade dispute with the EU. (Muhammad Adyatma Damardjati)

Also read:  Indonesia Secures WTO Support to Challenge EU’s Biodiesel Duties