Palm Oil Producers Under Fire Following EU Restriction

This Wednesday (14/8), the European Commission, the executive branch of The European Union, will officially enact the planned tariffs on biodiesel products coming from Indonesia, with duties ranging from 8-18% depending on the product. The tariff was proposed back in March in order to counteract the alleged subsidies the Indonesian government has given to biodiesel producers. The move is seen by the commission as a step towards EU’s renewable-energy movement and to give room in the market for local producers. However, Indonesia is ready to counter against what they see as “discriminatory” rules that are forced upon the country as the main supplier of crude palm oil in Europe, with 85% of the product coming from the Southeast Asian nation. Indonesia has warned that the EU restrictions would severely jeopardize the nation’s palm oil industry.

The issue of anti-subsidies tariff for palm oil products has been a common discussion among Indonesian producers, as the EU has opened the subsidy inquiry since December. However, according to the General Chairperson of the Indonesian Biofuel Producers Association, Master P. Tumanggor, the alleged nine subsidies charged by the European Union were seen as forced fabrications in order to move forward with the tariffs. In response, the Indonesian Biofuel Producer Association and the government is preparing a lawsuit inquiry to the World Trade Organization regarding the matter. Furthermore