InfoSAWIT, JAKARTA – The Indonesian government is pressuring the European Union (EU) to accept and adopt the World Trade Organization (WTO) Panel ruling in the biodiesel dispute, despite the bloc’s decision to file an appeal. The WTO Panel decision on September 26, 2025 (DS618) previously ruled in favor of Indonesia, challenging the EU’s countervailing duties (CVD) policy imposed since 2019.

Trade Minister Budi Santoso asserted that the EU's appeal is no longer relevant. “The Panel’s decision-making process was conducted according to procedure and led by experienced and credible panelists. This appeal move is inconsistent with the spirit of strengthening economic relations,” he stated in an official release received by InfoSAWIT on Friday (10/3/2025).

Since 2019, the EU has imposed countervailing duties of 8–18 percent on Indonesian biodiesel, claiming that it benefits from subsidies that harm the EU’s domestic industry. Indonesia challenged the policy at the WTO in August 2023, and two years later, the WTO Panel found the EU’s allegations unfounded.

Despite the ruling, the EU chose to file an appeal. However, this action is considered problematic because the WTO Appellate Body is currently paralyzed due to the United States' refusal to agree to the appointment of new members. This means there is no quorum to process the appeal, a situation often referred to as an "appeal into the void."

"While appeal is the right of every WTO member, the EU's move can be seen as an attempt to stall for time. Therefore, Indonesia urges the EU to be constructive, accept the Panel's decision, and collectively seek a solution to the paralysis of the WTO dispute settlement system," Budi stressed.

The government confirmed it will continue to take strategic steps to secure the biodiesel market in Europe while also exploring opportunities for expansion into other countries. (T2)