Indonesia hits out at US plan to disqualify palm-based biodiesel

Indonesia’s state run Antara News Agency reported yesterday that the country is preparing to file an objection to a United States’ plan to impose biodiesel standards which, among other things, disqualifies biodiesel made from palm oil as a renewable fuel.

We will convey our dissenting arguments on February 27 in accordance with the deadline for the filing of objections. We have already met business associations to formulate our arguments regarding the US policy,” Trade Minister Gita Wiyawan said in Jakarta Wednesday.

Meanwhile, Deddy Saleh, director general of foreign trade at the trade ministry, said the government would also look at the possibility of palm oil being discriminated against in the US regulation on renewable fuel standards.

“We will provide scientific proof and include it in our dissenting arguments to show they are wrong and that biodiesel from other vegetable oils is not different from palm oil-based biodiesel,” he said.

Wiryawan said the government objected to the US regulation’s stipulation on palm oil-based biodiesel because it could affect the country’s crude palm oil exports to the US and other countries.

Earlier, the US Environmental Protection Agency (EPA) stated biodiesel made from palm oil did not meet the criteria of a renewable fuel as it had a high greenhouse emission rate.