Indonesia to establish palm oil one map, to harmonize land data and to respond public criticism - Photo: Privacy

JAKARTA (TheInsiderStories) – The Indonesian government has stated it intends to challenge the US Commerce Department’s decision to impose a preliminary 50.71 per cent antidumping duty on imports of Indonesia’s palm oil-based biodiesel, Director General of Foreign Trade Ministry of Trade Oke Nurwan has declared.

‘We will fight the US dumping allegations through diplomatic channels,’ Nurwan told TheInsiderStories, on Wednesday (25/10).

The US Department of Commerce also slapped antidumping duties ranging from 54.36-70.05 per cent on imports of biodiesel from Argentina, typically made from soybeans.

The government collects levies on palm oil exports, the proceeds of which are funnelled to biodiesel producers in a scheme that is effectively a cross-subsidy. The government claims that the scheme is not in fact a subsidy but rather part of a domestic policy to blend 20 per cent of bio materials with diesel fuel.

Biodiesel imports from Argentina and Indonesia are valued at approximately US$1.2 billion and $268 million, respectively, in 2016, according to Commerce Department data. Argentina supplies two-thirds of U.S biodiesel imports as of 2016, with a total volume of 916 million gallons (3.5 billion liters).

Indonesia is the world’s largest producer of palm oil, while Argentina is one of the largest global exporters of soy products.

Writing by Elisa Valenta, Email: elisa.valenta@theinsiderstories.com