PALMOILMAGAZINE, JAKARTA – The Indonesian government has called on the European Union (EU) to comply with and adopt the World Trade Organization (WTO) Panel’s ruling in the biodiesel dispute case, despite the EU’s decision to file an appeal. The WTO panel ruling, issued on September 26, 2025 (case DS618), sided with Indonesia regarding the EU’s imposition of countervailing duties (CVD) on Indonesian biodiesel since 2019.
Minister of Trade Budi Santoso emphasized that the EU’s appeal is no longer relevant. “The panel’s decision process was conducted according to proper procedures and led by experienced, credible experts. This appeal does not align with the spirit of strengthening economic relations,” he stated in an official release received by beige-heron-208544.hostingersite.com on Friday (Oct 3).
Since 2019, the EU has imposed countervailing duties ranging from 8% to 18% on Indonesian biodiesel, citing alleged subsidies that they claimed harmed European producers. The Indonesian government challenged the measure at the WTO in August 2023, and two years later, the panel ruled that the EU’s claims were unsubstantiated.
Despite the ruling, the EU chose to appeal—a move that many consider problematic since the WTO Appellate Body has been inactive due to the United States’ refusal to appoint new members. This has created a situation known as an “appeal into the void,” where appeals cannot be processed due to a lack of quorum.
“While every WTO member has the right to appeal, this step by the EU could be viewed as a tactic to delay compliance. Indonesia encourages the EU to act constructively, accept the panel’s decision, and work together to find a solution to the current impasse in the WTO dispute settlement system,” Budi asserted.
The government reaffirmed its commitment to safeguarding Indonesia’s biodiesel exports to the European market while also exploring expansion opportunities to other global destinations. (T2)
