The European Court of Justice has upheld an appeal by Indonesia and ruled that the EU must remove the current 8.8-23.3% anti-dumping tax imposed on Indonesian biodiesel.
The ruling by the EU’s highest court – effective from 16 March onwards – reinforced a 23 January decision by the World Trade Organization (WTO) in favour of Indonesia, wrote Reuters on 21 March.
The WTO decreed that the EU had acted inconsistently with several of its policies by disregarding biodiesel prices recorded by Indonesian producers and failing to correctly calculate a normal profit margin and that it would have to bring its duties in line with WTO standards.
“With the elimination of these duties, businesses can once again export biodiesel to the EU,” said Oke Nurwan, director general of foreign trade at the Indonesian Ministry of Trade.
The Indonesia Biofuel Producers Association also welcomed the EU court’s ruling and vice chair Paulus Tjakrawan said the association would ask producers to prepare to start exporting again soon.
He declined to give estimations on expected export volumes, wrote Reuters.
Indonesia was also planning to challenge the anti-subsidy duties set against it by the USA in both US courts and at the WTO.
The country was pushing its domestic biodiesel production in a drive to further develop its biodiesel industry, with plans to expand biodiesel subsidies to cover palm oil-blended fuels to use in the Indonesian mining and power sectors.