Indonesia's victory in the biodiesel trade dispute against the European Union at the World Trade Organization (WTO) illustrates that Indonesia has never violated the principle of sustainable economy. Hopefully, in the future, palm oil products, biodiesel, and their derivatives can be guaranteed for export to Europe.
Economic observer from the Institute for Development of Economics and Finance (Indef) Eko Listiyanto said that the WTO ruling in favor of Indonesia has proven that Indonesia's position is strong. Indonesia has always implemented sustainable principles, and palm oil processing in the country is already environmentally friendly.
"This victory gives a positive signal that there will be no more debates about Indonesian palm oil products and their derivatives in the future," he told SUAR in Jakarta (28/8/2025).
But Eko also warned that Indonesia must remain vigilant and continue to monitor developments. Because, it could be that the European Union takes a demanding attitude or sends another lawsuit.
Deputy Chairman of the Indonesian Biofuel Producers Association (Aprobi) Catra de Thouars considers the WTO panel's decision in favor of Indonesia over this dispute a long struggle that should be celebrated.
The dispute stems from the European Union's policy of imposing countervailing duties on Indonesian biodiesel products for the 2018-2019 period. In response, the government together with biofuel industry players, palm oil, and legal experts took the path of a lawsuit to the WTO.
For almost two years, businesses have been fighting tooth and nail against the European Union. And finally, the struggle was not in vain because it produced sweet results this year, in the form of Indonesia's victory.
This victory is a breath of fresh air for the industry to keep fighting. However, the European Union is unlikely to remain silent. They could take new steps to block the entry of biodiesel from Indonesia. Therefore, the government and industry players are asked to remain vigilant and prepare further strategies.
"We have to be ready for the next step from the EU," Catra told SUAR in Jakarta (28/8).
The WTO decision does open up new market opportunities for Indonesian biodiesel in Europe. However, currently the main focus of the government and industry is still on renewable energy programs in the country. For example, the implementation of B40, or 40 percent biodiesel blend in diesel fuel, and the planned B50 trial.
Chris Wibisana
Consider adoption of panel ruling
Indonesia, through the Ministry of Trade (MoT), has asked the European Union to consider the option of adopting the World Trade Organization (WTO) panel ruling on the biodiesel dispute, or DS618.
"The government must ensure that this can be followed up with a scenario that favors Indonesia, because there are still several situations that must be observed (related to the WTO panel decision)," said Director General of International Trade Negotiations of the Ministry of Trade Djatmiko Bris Witjaksono in Jakarta (28/8).
Djatmiko said there are at least three options that Indonesia and the EU can take to respond to the WTO ruling.
First, Indonesia and the EU have 20 days-60 days, in the period August 22-October 22, 2025, to consider accepting/adopting the panel's decision or pursuing an appeal.
The second option is for the EU to appeal through the WTO Appellate Body (AB). The Panel's decision has not yet been adopted so it is not binding, and the imposition of countervailing duties (CVD) on Indonesian biodiesel products will continue.
Furthermore, the third option is for the EU and Indonesia to appeal through an Ad-Hoc Body.
"The Government of the Republic of Indonesia must develop the modalities of appeal after the EU filed a delay in the adoption of the Panel's decision. Therefore, the Indonesian Government must ensure the readiness of stakeholders and legal consultants," said Djatmiko.
The Ministry of Trade projects biodiesel exports to the European Union (EU) to stabilize at 6.7% following the victory of the DS618 dispute over countervailing duties (CVD) at the World Trade Organization (WTO) Panel.
Based on data shared by the Ministry of Trade, Indonesia's biodiesel exports have fluctuated over the past 10 years. There was a decline in the 2020-2021 period after the imposition of the CVD (2019), which was influenced by factors such as the Covid-19 pandemic and a decrease in the volume of biodiesel exports to the world.
During the CVD imposition period (2020-2024), Indonesia's biodiesel exports to the EU continued to grow by 6.7% with an average export value of US$ 319.7 million.
