Indonesia Should Struggle in WTO About Biodiesel Return Duty by EU

Palm Oil Magazine
Testing the Mandatory B40 Palm Oil Biodiesel Program. Photo by: Special

PALMOILMAGAZINE, JAKARTA – on 15 August 2023, Indonesia proposed dispute consultation to WTO about biodiesel return duty by European Union (EU). Indonesia should keep struggling for it in World Trade Organization (WTO), deliver every power in the best lobby because EU has run return duty about 8 – 18 percent since 2019.

The researcher of Lembaga Penyelidikan Ekonomi dan Masyarakat Fakultas Ekonomi dan Bisnis Universitas Indonesia (LPEM FEB UI), Eugenia Mardanugraha reminded that the government should struggle for in the WTO to lobby EU about biodiesel return duty from Indonesia.

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“The lobby should be in measure and bravery because the impact from the policy would have something to do with the decreasing export revenue from Indonesia. Millions of smallholders would get worse,” Eugenia recently said, as in the official statement to

Aloso Read : EU Probes Indonesian Biodiesel Exports Over Alleged Income Tax

Return duty would deliver seriously losses for (palm oil) industries in Indonesia, specifically after the economy in this world starts mobilizing after Covid-19 pandemic. “Indonesia itself should consider that the investigation process and return duty are inconsistent in WTO regulation,” she said.

On the other hand, she also reminded that it is important to escalate palm oil production in this country and biodiesel would be more competitive or equal with diesel price. “It is important so that in the future biodiesel would not be always getting subsidy from the fund that Palm Oil Plantation Fund Management Agency (PFMA) manages,” Eugenia said.

She suggested that it is significant to get palm oil diversification as fuel material in this country. “Palm oil gasoline could be the alternative to get and it would be easy to control biodiesel supply to EU,” she said. (T2)

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