InfoSAWIT, JAKARTA – The Indonesian government has secured another important victory in international trade. A World Trade Organization (WTO) panel ruled that the European Union's (EU) policy of imposing countervailing duties on biodiesel products from Indonesia is inconsistent with WTO rules. The ruling was announced on Friday (8/22) in the DS618 dispute.

Indonesian Trade Minister Budi Santoso welcomed the result. According to him, the victory affirms Indonesia's commitment to complying with international trade rules. "This decision proves that Indonesia has never implemented policies that distort international trade, as the EU accused. We urge the EU to immediately revoke these countervailing duties, which are inconsistent with WTO rules," Budi said in an official statement received by InfoSAWIT on Thursday (8/28/2025).

In its deliberations, the WTO Panel—comprising representatives from South Africa, Mexico, and Belgium—stated that the European Commission acted inconsistently with the provisions of the WTO Agreement on Subsidies and Countervailing Measures (ASCM). The EU had previously argued that Indonesia provided subsidies through policies on biodiesel raw materials, export duties, export levies, and the establishment of reference prices for palm oil. However, those arguments were struck down by the panel's decision.

There were three key aspects that formed the basis of Indonesia's victory. First, the panel rejected the EU's claim that the government directed palm oil businesses to sell at low prices to benefit biodiesel producers. Second, it was determined that palm oil export duties and levies do not fall into the category of subsidies. Third, the European Commission was found to have failed to prove that Indonesia's exports caused material harm to their biodiesel industry. "Therefore, the countervailing duties imposed by the EU are not based on objective evidence," said the Trade Minister.

Secretary-General of the Ministry of Trade, Isy Karim, added that the government will oversee the follow-up to this ruling. "We hope the EU will respect the WTO decision and adjust its policy immediately so that Indonesian biodiesel exports to Europe can recover," he said. He stressed that all diplomatic and legal instruments would be used to ensure the decision is fully implemented.

For Indonesia, the DS618 victory is not just about biodiesel but also proof that the WTO mechanism remains relevant amid global uncertainty. The government reiterated its commitment to fighting for fair and rules-based trade while continuing to strengthen the competitiveness of the national biodiesel industry in the international market. (T2)