Our Research

Double trouble: Indonesia biodiesel exports at risk as EU plans duties

26 July 2019

Indonesia FAME exports to the EU jumped in 2018 with duties scrapped

The European Commission (EC) has proposed duties of up to 18% on biodiesel imports from Indonesia to counter unfair subsidies. (Reuters) The latest move comes at a time when the EU is preparing to phase out palm oil in transportation fuels by 2030, which is likely to weigh on Indonesia biodiesel exports to the EU. Indonesia exported around 800kt of fatty acid methyl ester (FAME) to the EU last year, rising sharply from 2017. An anti-subsidy investigation was launched by the EC in December 2018 following a complaint by the European Biodiesel Board, with evidence that Indonesian producers gained from the subsidies. The measures would be provisional, subject to the conclusion of the EU investigation, and be put in place by 6 September. Definitive duties would have to be set by 4 January 2020.

Get in touch with us and know how we can help.