JAKARTA – Indonesia managed to win the biodiesel trade dispute against the European Union (EU) at the World Trade Organization (WTO). The trade dispute, registered at the WTO as DS618, is concerned with the EU’s application of countervailing import duties against biodiesel product from Indonesia, due to accusation that Indonesia’s biodiesel policy provides subsidy for the biodiesel product.
The Association of Indonesian Producers of Biofuel (Aprobi) has stated that Indonesia’s victory over the trade dispute will strengthen its position in countering the negative campaigns against palm oil at the global market. Aprobi’s Promotion and Communication Division Deputy Chairman Catra De Thouars said that the support from WTO is good news for the palm oil industries in Indonesia, and creates positive image at the international market. According to him, the WTO ruling paves the way for the creation of fair international trade.
“The trade fairness should be especially given to palm oil-based products that have been long hit by negative campaigns,” he said in a press statement received by Media Indonesia in Jakarta on Tuesday (26/08/2025).
Catra said the trade dispute was triggered by the EU’s action of slapping the countervailing import duties and anti-dumping policy against Indonesia’s biodiesel product since 2018–2019. As a response to the EU’s policy, in 2023 the Indonesian government, biofuel and palm oil industry players, and legal experts filed a lawsuit of trade dispute to the WTO.
“Without the support of all stakeholders, the government, industry players and team of legal experts, will find it difficult in dealing with the EU at the WTO,” he said.
He added that the victory will provide new encouragement for the industry to continue fighting. He reminded that EU will possibly take new steps to prevent the entry of Indonesia’s biodiesel product into EU market. Therefore, the government and the industry players should be always vigilant and prepare next strategies.
“With the support of WTO through its ruling, EU will certainly take action. We have to be prepared to deal with the next steps of EU,” he said.
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Regarding the impacts to exports, Catra said the WTO ruling will open opportunities of new markets for the biodiesel product of Indonesia in European market. But currently, the main focus of the Indonesian government and the palm oil industries is still on the program of renewable energy for domestic market. The program includes the implementation of mandatory program of biodiesel 40 percent (B40) blending of 40 percent biodiesel and 60 percent diesel fuel, and the plan of B50 trial.
sawitindonesia.com. Kemenangan di WTO Memperkuat Posisi Indonesia Dalam Melawan Kampanye Hitam Sawit. https://sawitindonesia.com/kemenangan-di-wto-memperkuat-posisi-indonesia-dalam-melawan-kampanye-hitam-sawit/. 26 Agustus 2025
