Indonesia's CPO and Biodiesel Exports to the EU (24/10/2013)

Indonesia's CPO and Biodiesel Exports to the EU

The European Union (EU) is Indonesia's second most important export market - in which furthermore Indonesia enjoys a large trade surplus. There has been a lot of press - much of it misguided - on crude palm oil (CPO) and biodiesel exports to the EU.

It should be underlined that most of Indonesia's CPO exports enter the EU duty free. According to the EU statistics (Eurostat) Indonesia's exports of CPO have increased significantly over the last five years from € 265 million in 2008 to € 1.1 billion in 2012. Indonesia's exports of biodiesel have also increased sharply from only € 116 million in 2008 to € 993 million in 2012.  This illustrates very clearly that the EU market is very open indeed.

However, the European Commission (EC) was presented with sufficient prima facie evidence of dumping by companies from both Indonesia and Argentina of biodiesel on the EU market. It was duty bound to investigate. It has followed WTO procedures which has involved deep consultations with Indonesian companies.

The EU is now coming towards the final step in its biodiesel anti-dumping investigation against Indonesia and Argentina. The anti-dumping investigation was initiated in August 2012 and provisional measures were imposed in May 2013.

The interested parties were given the opportunity to comment by 17 October 2013 to the final disclosure. Having now examined these comments, the EC will shortly make its final proposal to the Council of the EU.  The Council of the EU's decision is expected by 28 November 2013.