Trade Minister Enggartiasto Lukita stated that his party will first study the allegations from the US. In addition, the party will also speak with business operators, especially in the domestic palm oil sector, to get feedback. “We will definitely immediately file an objection and will further discuss this with business operators,” he said in Jakarta yesterday. As reported by Antara, the US has imposed anti-subsidy import duties on biodiesel from Indonesia that will apply retroactively for the past 90 days. This move is a follow-up to a petition from the local biodiesel industry, which accused Indonesia of providing subsidies for the biodiesel industry. Some time ago, the National Biodiesel Board (NBB) Fair Trade Coalition, together with 15 other American biodiesel producers, filed a petition regarding biodiesel products from Indonesia and Argentina. The petition was filed as a result of investigations conducted over the 2014-2016 period. The demands of the petition are accusations that Indonesia and Argentina have provided biodiesel subsidies and dumped prices for biodiesel sold in the US, and that they are asking the US government to initiate anti-dumping and anti-subsidization actions. It is noted that the temporary anti-subsidy import duty for biodiesel for Wilmar International Ltd is 47.06%, PT Musim Mas has reached 68.28%, and for other companies that export to the US, it is 44.92%. The temporary anti-subsidy import duty on biodiesel will also apply to companies from Argentina, with LDC Argentina SA at 50.29%, Vicentil SAIC at 64.17%, and others at 57.01%. The United States Department of Commerce will issue a final decision on November 7, 2017, and the decision could be extended and the amount of the anti-subsidy import duty may change back. For the record, the US imported US$1.2 billion worth of biodiesel from Argentina and US$268 million worth of biodiesel from Indonesia in 2016. The import trend for biodiesel for the US grew by about 58% over the 2014-2016 period. (tl) Source: Investor Daily —————————————————– Thursday, August 24, 2017 INDONESIAN EXPORTS: US Imposes Additional Import Duties on Biodiesel JAKARTA — The United States has imposed countervailing duties or additional import duties on biodiesel commodities from Indonesia. The United Department of Commerce (USDOC) decided to impose additional import duties on Wilmar International Ltd of 41.06% and PT Musim Mas of 68.28%. In the meantime, other Indonesian producers will be subject to additional import duties of 44.92%. Minister of Trade Enggartiasto Lukita stated that he will file an objection against the US authorities’ decision. His party will discuss it further with the relevant stakeholders. However, the Minister of Trade has not yet decided whether he will bring this matter to the World Trade Organization (WTO). “Yes, this has only just happened and we will look into it and will study it immediately so that immediate action can be taken,” he said at the Ministry of Trade office on Wednesday (23/8). Meanwhile, Senior Manager of PT Musim Mas Togas Sitanggang was unwilling to give any comment regarding the imposition of additional import duties from the US. “No comment,” he said in answer to a question from Bisnis. The imposition of additional import duties started when the National Biodiesel Board (NBB) Fair Trade Coalition and 15 other US biodiesel producers filed a petition regarding products from Indonesia and Argentina on March 23, 2017. The petition contained two main points and claimed to be the result of an investigation conducted over the period 2014-2016. Firstly, that Indonesia and Argentina have provided biodiesel subsidies and dumped prices for biodiesel sold in the US. Secondly, that the US government should initiate anti-dumping and anti-subsidization action by conducting an investigation. The NBB claims that the market share for Indonesian biodiesel in the US is 5.1%, while the market share for Argentina is 20.3%. The items considered to be government subsidies include the Biodiesel Levy from the Indonesian Palm Oil Fund Management Agency (BPDP-KS) and export facility subsidies. In its petition, the NBB also stated that over 2014-2016 consumption had increased by 800 million gallons or by 58%. The high level of imports is considered to have had a negative impact on domestic US producers and hampered growth. The Director of Trade Security, Ministry of Trade, Pradnyawati, previously stated that diplomatic steps had been taken with regard to the allegations that had been made. The party had also asked the Ministry of Foreign Affairs to deal with the issue as one of the most important parts of diplomacy. He stated that the accusations of biodiesel dumping were a serious matter of concern for the government, since the sector is a mainstay of exports for Indonesia. “We [the Ministry of Trade] have also prepared a refutation of several points regarding what Indonesia is accused of,” he explained. As is known, Indonesian biodiesel exports in 2015 and 2016 amounted to 206,000 tons and 373,500 tons, respectively. Around 90% of Indonesian biodiesel products are sent to the US. Based on Trademap data, biodiesel exports to the US in 2015 amounted to US$153.03 million. This figure rose to US$185.31 million the following year and rose again to US$291.91 million in 2016. (M. Nurhadi Pratomo) Source: Bisnis Indonesia
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