EU’s Anti-Subsidy Tariffs Could Cut Indonesian Biofuels Export
Indonesian biofuel producers expressed a lot of concerns about the European Union’s proposal to impose new anti-subsidy tariff on biofuels export.
Indonesian biofuel producers expressed a lot of concerns about the European Union’s proposal to impose new anti-subsidy tariff on biofuels export. The duties ranging between 8 and 18% could cut Indonesian biofuels shipment to the EU. “The duties will make us difficult to export,” Paulus Tjakrawan, Chairman of Indonesian Biofuel Producers Association (Aprobi) said in Jakarta, (29/7/2019). Earlier, the European Commission has proposed duties ranging between 8 and 18% on imports of biofuels from Indonesia to counter what it says are unfair subsidies. Paulus said, producers have shown an immediate reaction against the proposal because they can only afford a 5% tariff hike. The proposed import duty rates are 8% for Ciliandra Perkasa, 16.3% for PT Intibenua Perkasatama and PT Musim Mas (Musim Mas Group), 18% for PT Pelita Agung Agrindustri and PT Permata Hijau Palm Oleo (Permata Group), 15,7% for PT Wilmar Nabati Indonesia and PT Wilmar Bioenergi Indonesia (Wilmar Group). Import duty for other companies is 18%. The Indonesian government has also responded to the proposal and made diplomatic negotiations. Earlier in March, the EU decided that palm oil should no longer be considered as green and so should be phased out of renewable transportation fuel. Together with Malaysia, Indonesia will challenge it to the World Trade Organization (WTO). *** (Source: Katadata)