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Europe Attacks RI, This New “Treasure” is Threatened

The European Union (EU) again “attacked” RI. Now, the “treasure” of biodiesel is also under threat.

Quoting Reuters , the EU is currently investigating whether biodiesel from Indonesia avoids EU duties via China and the UK. The investigation follows an initial request from the European Biodiesel Council, an association of European producers.

“The request contains sufficient evidence that the existing countermeasures on the import of the product in question were circumvented by the import of the product under investigation,” the European Commission said in the official EU journal quoted by CNBC Indonesia , Friday (18/8/2023).

“Changes in trade patterns involving exports from Indonesia and the People’s Republic of China and the United Kingdom to the Union have occurred following the implementation of existing countermeasures,” he added.

It is known, the EU is Indonesia’s third largest destination for palm oil products. This is also an important market for Indonesian biodiesel, which is made from palm oil.

RI itself is the largest palm oil producer in the world. Neighboring Malaysia is also one of the other big producers.

Meanwhile, in a different statement, the European Biodiesel Council said that it was estimated that efforts to avoid import duties could cost the EU around US$240.34 million last year. The association said it was working with EU authorities to address allegations of counterfeit biodiesel imports from China.

Trade relations between the EU and Indonesia have been strained by the bloc’s move to limit imports of commodities linked to deforestation. Previously, Indonesia was seeking consultation with the World Trade Organization (WTO) regarding the imposition of EU duties on biodiesel imports from Indonesia.

The European Commission once told journalists that the EU believes compliance obligations in Indonesia are fully in accordance with WTO rules where the EU is ready to discuss this issue with RI. Apart from biodiesel, palm oil is widely used in food and cosmetics.

Source : CNBC