An article by Linda Yulisman, The Jakarta Post.
Indonesia will soon lodge a formal complaint with the World Trade Organization (WTO) over the European Union’s anti-dumping duty, which hampers its biodiesel exports.
Indonesia decided to advance to the global trade governing body to seek a fair ruling in the dispute, as the tariffs charged by the grouping created barriers to its palm-oil-based biodiesel, Deputy Trade Minister Bayu Krisnamurthi said Wednesday.
“We consider the imposition of the tariffs does not comply with WTO rules, and for that reason we’ll challenge it,” Bayu said.
Since the end of November last year, the 28-member bloc has applied considerable five-year tariffs on biodiesel from both Indonesia and Argentina of up to ¤245.67 (US$342.32) per ton, or equal to 25.7 percent of the selling price.
The anti-dumping duty was issued following an EU investigation that found Indonesia’s biofuel being sold below normal value in its market. Imports from Indonesia jumped between 2008 and 2011, allowing its market share to rise steeply from 1.4 percent to 9.7 percent, thereby threatening the industry across the bloc.
The levies have affected several Indonesian biodiesel producers, including PT Musim Mas and PT Pelita Agung Agrindustri.
Soon after the EU introduced the steep tariffs, the government and industry players complained directly to the grouping for allegedly making discriminatory calculations on biodiesel prices and production costs, causing a loss in competitive edge.
Indonesian Biofuel Producers Association (Aprobi) secretary-general Paulus Tjakrawan said several Indonesian biofuel producers affected by the measures had recently filed separate appeals to the European Court of Justice.
“The decision was made as the anti-dumping duties really hurt their businesses,” he told The Jakarta Post.
Meanwhile, the government’s formal complaint to the WTO will be preceded by a series of consultations over the measures. If the talks fail to resolve the trade quarrel within 60 days, Indonesia will be granted the right to step up its fight through a new request for the establishment of a dispute settlement panel.
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