Indonesia not likely to hit biodiesel targets this year

In Indonesia, the country is far from achieving its biodiesel blending targets this year of 1.56 million kiloliters in road vehicles. Through May, only 447,000 kilolitres had been blended. CIMB Investment Bank is only expecting consumption to reach 1.5 million kiloliters because of the poor logistics in getting the fuel out to the eastern regions.

The news comes two weeks after Indonesia officially launched a complaint against the EU at the WTO over anti-dumping tariffs Europe has lodged against Indonesian biodiesel imports since May last year. The WTO established a dispute panel over similar changes made by Argentina already in April.

Last month, the Indonesia government said it would file an official complaint with the WTO against the European Union and its anti-dumping tariffs on biodiesel imports, following Argentina seeking and getting approval for the opening of a dispute settlement panel. Several biodiesel producers have also filed complaints directly with the European Court of Justice.In April, the WTO agreed to set up a dispute panel between Argentina and the European Union regarding the latter’s anti-dumping tariffs levied on Argentine biodiesel imports. Argentina argued that the anti-dumping tariffs have effectively closed off the European market to its biodiesel. The European and Argentine representatives to the WTO in Geneva are reportedly in contact in an attempt to resolve the trade dispute without the need for the panel or further interventions.