Tracing Indonesia’s Road to WTO Victory Over EU in Biodiesel Trade Dispute
Key Takeaways
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JAKARTA, Investortrust.id — Indonesia has won a major trade dispute against the European Union after the World Trade Organization ruled that the bloc’s countervailing duties on Indonesian biodiesel exports were inconsistent with global trade rules.
The Ministry of Trade said the victory concluded a long battle that began on Nov. 28, 2019, when the European Union imposed countervailing duties ranging from 8% to 18% on biodiesel products from Indonesia.
Director General of International Trade Negotiations at the Ministry of Trade Djatmiko Bris Witjaksono explained on Thursday, Aug. 28, 2025, that the tariffs stemmed from a petition filed by the European biodiesel industry, which initially sought both anti-dumping and countervailing measures. In the end, the EU only applied the countervailing duties.
By 2023, Indonesia began reviewing the impact of the duties on its biodiesel exports and decided to bring the case to the WTO’s Dispute Settlement Body, arguing that the measures violated the General Agreement on Tariffs and Trade 1994 and the WTO Agreement on Subsidies and Countervailing Measures.
“Before entering litigation, the parties were required to conduct consultations, which we held in August and October 2023. When no resolution was reached, we proceeded to the litigation stage and requested the formation of a dispute panel,” Djatmiko said during a press conference in Jakarta.
The case involved an extensive submission of evidence and legal arguments between 2023 and 2025, with several WTO members participating as third parties. On Aug. 22, 2025, the WTO panel circulated its decision, siding with Indonesia.
“The panel clearly ruled in favor of Indonesia,” Djatmiko said. “It confirmed that Indonesia did not provide illegal subsidies that caused or threatened material injury to the European biodiesel industry.”
The ruling means the European Union must revoke its countervailing duties on Indonesian biodiesel, a decision expected to restore competitiveness for one of Indonesia’s key export commodities.
Export Performance Despite Tariffs
Despite the tariffs, Indonesian biodiesel exports to the European Union continued to record positive growth. According to the Ministry of Trade, shipments rose by 6.7% between 2020 and 2024, with an average annual value of $319.7 million.
“Exports to the European Union still grew 6.7%, averaging around $319.7 million,” said Djatmiko.
Djatmiko noted that the tariffs did not fully dampen Indonesia’s biodiesel performance. Trade Ministry data showed that exports remained robust through 2021–2022 before coming under pressure in 2023–2024 in line with global market conditions.
Countervailing duties are additional tariffs imposed by an importing country to offset subsidies granted by an exporting country to its industries. Indonesia argued that the European Union’s measures were inconsistent with WTO obligations.
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