August 28, 2025 | 11:18 pm
TEMPO.CO, Jakarta - The Ministry of Trade is confident about Indonesia's biodiesel exports to the European Union following a victory in the Countervailing Duty (CVD) dispute against the EU at the World Trade Organization (WTO). Director General of International Trade Negotiations at the Ministry of Trade, Djatmiko Bris Witjaksono, said Indonesia is eyeing a 6.7 percent average annual growth in biodiesel exports.
"For export projections, we are expecting our biodiesel to continue growing by 6.7 percent. That has been the average figure for the past four years, and it would be great if we can maintain or improve it," Djatmiko said when met at the Ministry of Trade Auditorium in Central Jakarta on Thursday, August 28, 2025.
He added that Indonesia's potential biodiesel exports are also influenced by the high domestic demand due to the B40 mandatory program. By 2045, domestic biodiesel needs are estimated to reach 15.6 million kiloliters.
"If our biodiesel production is extraordinary, perhaps export growth can be sustained. But at least the 6.7 percent figure over the past five years is a realistic target that we maintain," Djatmiko said.
Nevertheless, according to Djatmiko, the EU market cannot block Indonesian biodiesel products following the WTO panel's decision. Especially in the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations, the EU has recognized Indonesian palm oil and its derivatives as sustainable commodities.
Furthermore, Indonesia's victory in the biodiesel dispute at the WTO is said to not only provide export market certainty but also support national energy resilience. "Biodiesel production is also relevant for Indonesia's energy transition program. So, if exports can grow and domestic needs are met, both will have a positive impact on the economy," Djatmiko said.
Indonesia won a trade dispute against the European Union earlier, regarding countervailing duties imposed on Indonesian biodiesel imports, or Dispute DS618. The WTO panel on Friday, August 22, ruled that the EU was inconsistent with the provisions of the WTO Agreement on subsidies and Countervailing Measures in several key aspects.
Trade Minister Budi Santoso stressed that the WTO panel stated that the EU's imposition of countervailing duties violated the WTO Agreement on Subsidies and Countervailing Measures. The EU Commission had previously assessed that Indonesia provided subsidies to biodiesel producers through raw material supply policies, export levies, export duties, and the setting of reference prices for palm oil, which were considered to distort prices.
"We urge the EU to immediately withdraw the inappropriate countervailing duties in line with the WTO ruling," he said in a statement in Jakarta on Monday, August 25, as quoted by Antara.
Antara contributed to the writing of this article
Editor’s Choice: Indonesia Wins WTO Dispute, Calls for End to EU Biodiesel Tariffs
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