Indonesia calls on EU to open market to Indonesian palm oil biofuels

Indonesia on Monday called on the European Union to immediately lift countervailing duties on biofuel imports after the World Trade Organization upheld several of Jakarta’s key demands in a complaint to the trade body.

Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono issued a statement saying the association fully welcomed the clear WTO decision and called the EU’s measures to restrict Indonesian biofuel imports wrong and unjustified, Reuters reported.

“The decision confirms a worrying trend: for more than a decade, the EU has been systematically and illegally blocking sustainable palm oil and its products from Indonesian plantations from entering the European market,” Martono said.

Recall that since 2019, the EU has imposed duties of 8% to 18% on Indonesian products, stating that biodiesel producers in this Southeast Asian country receive grants, tax breaks and access to raw materials at below-market prices.

In his statement, the head of GAPKI emphasized that the EU deliberately distorted data on government support measures for Indonesian agricultural producers and failed to provide the WTO with evidence of real damage to the EU industry, pointing only to a hypothetical “threat”. The EU’s actions grossly violated the fundamental WTO rules on transparency and due process, he noted.

GAPKI called on the European Commission to promptly cancel discriminatory duties and restore free access for Indonesian biofuels to the community market. The association paid special attention to the adoption of the EU Deforestation Regulation (EUDR), calling for guarantees that the new rules will not become another hidden barrier to trade.

“We insist that Indonesia’s 2.7 million smallholder oil palm farmers be fully included in the new regulation, whether through certification programs or direct exemptions from discriminatory duties,” said Eddy Martono.

A free trade agreement between Indonesia and the EU is likely to be signed soon, with the EU promising zero tariffs on Indonesian palm oil and special treatment for Indonesian products.

Tags: palm oil, Indonesia, EU