Logo of Phnom Penh Post newspaper Phnom Penh Post - EU imposes temporary duties on subsidised Indonesian biodiesel

EU imposes temporary duties on subsidised Indonesian biodiesel

Content image - Phnom Penh Post
Environmentalists say the damage caused by the production of palm oil, a common ingredient of biodiesel, is unacceptable. CHAIDEER MAHYUDDIN/AFP

EU imposes temporary duties on subsidised Indonesian biodiesel

The EU has imposed duties on imports of subsidised biodiesel from Indonesia in order to level the playing field for EU producers, officials said on Tuesday.

The European Commission, the EU’s executive arm, imposed temporary duties ranging from eight to 18 per cent but warned it could impose permanent measures by the end of the year.

A commission investigation “found that Indonesian biodiesel producers benefit from grants, tax benefits and access to raw materials below market prices”, it said.

“This inflicts a threat of economic damage to EU producers,” the commission statement said.

The commission said its investigation focused on possible subsidies for biodiesel production, whether it involved palm oil or other, less-used, raw material.

It said the EU biodiesel market is worth an estimated €9 billion ($10.1 billion) per year, with imports from Indonesia amounting to €400 million.

Palm oil is the world’s most widely used vegetable oil and a key ingredient in a range of products from food to cosmetics.

But environmentalists say it drives deforestation, with huge swathes of Southeast Asian rainforest logged in recent decades to make way for palm plantations.

Indonesian trade minister Enggartiasto Lukita said last week he had told Indonesia’s dairy importers to look for new suppliers outside Europe, and threatened to hike existing tariffs on EU dairy products, which currently range from five to 10 per cent.


  • Kingdom’s domestic milk still cannot compete with imports

    Price competition and a lack of confidence by consumers are the main reasons the dairy market cannot compete with imports, said domestic milk producers. The large displays of imported fresh milk at the Kingdom’s supermarkets present a cumbersome obstacle for local producers, they said.

  • ‘Pesticide-laden cucumbers’ kill two, poison 150 in Banteay Meanchey

    At least two youths have died and 243 others are being treated for vomiting, diarrhoea, breathing difficulties, dizziness and muscle weakness after they ate cucumbers suspected to consist of pesticides. The incident happened on Saturday, said Banteay Meanchey provincial police chief Ath Khem. He told The

  • Three dead, 13 injured in collapse at Siem Reap pagoda

    At least three people were killed and more than 10 others injured on Monday after a dining hall under construction collapsed at Prasat Kokchak pagoda in Kokchak commune, Siem Reap province. Provincial police chief Tith Narong said Military Police, soldiers and local volunteers had successfully recovered 16

  • Forest Harmony’s $18M luxury villas break ground in Kampot

    Local and French joint-venture Forest Harmony has broken ground on its $18 million “second-home” Luxury Holiday Villas project in Kampot province. Century 21 Mekong CEO and local shareholder of the project Chrek Soknim told The Post that the project will comprise 90 villa units covering 18ha on a 97

  • China Unicom enters Cambodia

    China Unicom, the country’s largest telecoms operator, has expanded into Cambodia to build optical telecommunication pathways in the Kingdom as part of the Belt and Road Initiative (BRI). The Hong Kong-listed company officially opened its China Unicom (Cambodia) subsidiary on Monday to become the

  • PP-SHV Expressway on track for completion in early 2023

    The construction of the $1.9 billion Phnom Penh-Sihanoukville Expressway, which broke ground at the end of March, is on track to be completed by early 2023, Ministry of Public Works and Transport spokesman Vasim Sorya said on Monday. The 190km high-speed highway linking the capital to the