Palm mill owned by PT Sinar Jaya Agro Investama in Bengkulu, Sumatera (Photo credit : Sinar Jaya Agro Investama)

JAKARTA (TheInsiderStories) – The Indonesian government has scored another victory over the dispute on biodiesel exports to the European Union (EU) at the EU Court, implying the tariff effacement of  8.8 – 23.3 per cent of anti-dumping import duty. The tariff removal policy has been valid since March 16.

This victory is Indonesia’s double victory over the EU after the government managed to win the dispute in the  World Trade Organization (WTO) last January. The outcome of the EU Court ruling and the WTO ruling provides a positive signal for Indonesian trading partner countries to the fair trade of the palm oil sector.

Director General of Foreign Trade, Ministry of Trade, Oke Nurwan said the decision gives fresh hope to the crude palm oil (CPO) exporters and producers in the country.

For Indonesian biofuel producers and exporters as well as CPO producers, the WTO ruling gives rise to optimism as the EU is a big market in terms of biofuels.  Indonesian biodiesel exports to the EU could reach $386 million in 2019 and surge further to  $1.7 billion by 2022.

The decision helps bolster the confidence of the government to face a negative campaign related to palm products and derivatives from Indonesia, launched by international non-government agencies and some trading partners of Indonesia.

Indonesia is one of the world’s largest exporters of palm oil-based biodiesel. Statistics recorded Indonesia biodiesel exports to the EU had reached $1.4 billion in 2011 before the imposition of the anti-dumping import duty by the EU countries in 2013.

Since 2013, the EU has imposed import duties on Indonesia’s biodiesel products with a dumping margin of between 8.8 and 23.3 per cent. The move caused a 42.84 per cent decline in Indonesia’s biodiesel exports to US$150 million in 2016 from $649 million in 2013.

Indonesia also plans to challenge anti-subsidy duties in the United States at the U.S. court and at the WTO.