TEMPO.CO, Jakarta - The Ministry of Trade (Kemendag) suspects the European Union (EU) of commencing a massive and structured strategy to isolate biodiesel products exported to EU countries.
The Ministry of Trade Security Director Pradnyawati accuses the EU of practicing a protectionist policy.
"The EU basically does not want vegetable oils from tropical countries to compete with European-produced ones, because palm oil is very effective from any parameter," said Pradnyawati at the ministry's office on Friday, July 26, 2019.
Pradnyawati said that biodiesels produced from Indonesia's oil palm are more competitive compared to that of EU products that rely on sunflower seeds that Pradnyawati said to be too costly to produce with limited quantities.
Previously, Indonesian biodiesels will be subject to 8 to 18 percent of import tax by the EU starting from September 6, 2019, and will be definitive in January 4, 2020, and the following five years. This is said to be the aftermath of Indonesia-EU biodiesel dispute for the past 7 years.