Good News, Airlangga Welcomes WTO's Decision On Biodiesel Dispute With The European Union

Coordinating Minister for Economic Affairs Airlangga Hartarto said the World Trade Organization (WTO) issued a decision that upheld Indonesia's position in the award-income duty dispute (countervailing duties) imposed by the European Union on biodiesel from Indonesia.

In its decision, the WTO Panel recommended the European Union to adjust policies to align with the obligations listed in the Agreement on Subsidies and Countervailing Measures (SCM Agreement).

This decision reinforces Indonesia's steps in fighting for fair market access for palm oil and biodiesel.

"This is good news in which the WTO Panel supports Indonesia in the decision related to the wearing of the dumping duty biodiesel in Europe," said Airlangga as quoted by ANTARA, Saturday, August 23.

"As a consequence of the WTO Panel's decision, of course the European Union needs to withdraw the dumping given. Well, we Indonesia is just waiting to see how the European Union responds to the WTO Panel's decision," he added.

It is known that this lawsuit has been filed since 2023 after the European Union set import duty rates for biodiesel from Southeast Asia, including Indonesia, which is considered contrary to WTO regulations.

Airlangga emphasized that the government will prepare measurable implementation steps so that the WTO decision brings tangible benefits to strengthen Indonesia's export competitiveness. He also considered this decision to be an important driver for the development of biodiesel as a national leading commodity in the global market.

"The Indonesian government is committed to continuing to oversee the decision with a solution approach, prioritizing international collaboration, as well as fighting for national interests in the global trade arena," said Airlangga.

Through a Panel Report released on January 10, 2025, the WTO confirmed that the European Union had taken discriminatory actions by providing unfair treatment that harmed Indonesian palm oil and biofuels.