REPUBLIKA.CO.ID, JAKARTA -- Indonesian government through Ministry of Trade rejected EU's anti-dumping duties on Indoesia's biodiesel. Director General of Foreign Trade in Ministry of Trade, Bachrul Chairi said that EU announced on November 26 that it would place five year tariffs on biodiesel from Indonesia, along with Argentina.

"Indonesian governments with associations, manufacturers and exporters have agreed to fight for the imposition. It must be cancelled due to calculation of normal value in determining margin of dumping that is conducted by KE Council Implementing Regulation is not appropriate to provisions of anti dumping," Chairi said recently.

Indonesia would report the case to World Trade Organization (WTO) in Geneva. Ministry of Trade also submitted an objection to European Court of Justice. Indonesia's biodiesel will be imposed tariff of 8.8 to 20.5 percent. This figure is higher than the previous tariff as EU changes its calculation method of production cost in determination of normal value. KE Council reconstructed raw material prices and it is not associated to what was purposed by Indonesian producers during an investigation on the spot verification.

Dumping investigation against Indonesia's biodiesel began on August 29, 2012. Director of Indonesian Trade Security in Ministry of Trade, Oke Nurwan considered that tariff imposition was to pressurize local industry in order to protect European industries. EU's biodiesel feedstock is more expensive and less efficient than Indonesia's biodiesel, which is made of palm oil. Looses of EU biodiesel industry was due to excess of its capacity. 

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