Boycotted by the EU, Indonesia Boosts Domestic Consumption
22 November 2013 07:26 WIB
TEMPO.CO, Jakarta - Deputy Trade Minister Bayu Krisnamurthi said Indonesia will not be affected by the high tariff implementation and dumping allegations thrown by the European Union against local biodiesel products. Bayu said that domestic consumption will increase, driven by the regulation mandating biodiesel mix in diesel fuel.
"Besides, exports to Europe are relatively small," Bayu said in a discussion at Wisma Antara, Wednesday.
On Wednesday, Bloomberg reported that the EU had re-imposed high tariffs on biodiesel products from Indonesia and Argentina for the next five years. The EU suspects biodiesel producers from both countries of dumping practices, selling below the domestic price. The charges will be applied to biofuel products made of vegetable oils and animal fats for diesel engines.
Some of the companies accused of dumping are Molinos Rio de la Plata SA and Aceitera Umum Deheza SA from Argentina, and Indonesia's PT Pelita Agung Agrindustri. These companies will be charged a fee of US$332.05 per metric ton, 25.7 percent of the price.
The dumping accusation was made by German manufacturer Verbio AG (VBK), France's Diester Industrie SAS and Italy's Novaol Srl. The European companies claimed they had suffered losses due to dumping practices by Indonesian an Argentinean companies.
Bayu said that EU's steps will only backfire, given the fact that the region has a high need for biodiesel.
Meanwhile, chairman of the Indonesian Biofuel Producers Association (APROBI) Paulus Tjakrawan said he was concerned over the EU's action. According to Paulus, demand from Europe accounts for 80 percent of Indonesia's biofuel exports. However, he said that businessmen have yet to decide on how they will address the situation.
PINGIT ARIA | ANGGA SUKMA WIJAYA
