EU Disputes WTO Ruling Favoring Indonesia
The European Union plans to appeal a World Trade Organization ruling against Brussels’ import duties imposed on biodiesel from Indonesia, meaning the case is set to remain in limbo at the WTO’s paralyzed Appellate Body. In a press release on Friday, the WTO noted that Jakarta “expressed regret” about the EU’s decision to appeal, while Brussels “recalled that it had invited Indonesia” to join an alternative arbitration established to address the absence of the Appellate Body.
The EU has been charging countervailing duties of 8 to 18 percent on biodiesel imported from Indonesia since 2019, thereby protecting European companies that mainly produce rapeseed-based biodiesel, which is more expensive than Indonesia’s palm oil-based fuel. Trade Ministry international trade negotiations director general Djatmiko Bris Witjaksono told The Jakarta Post on Sunday that the government “is weighing the next steps to respond to the EU’s decision”. (Jakarta Post)
Prabowo’s UN Speech: Troops, Climate, Two-State Plan
In his UN General Assembly speech on Tuesday, September 23, titled “Indonesia’s Call for Hope”, President Prabowo Subianto emphasized unity and equality among nations, recalling how UN solidarity helped Indonesia overcome colonialism, hunger, and poverty. He underscored Indonesia’s commitment to multilateralism and offered to deploy more than 20,000 peacekeepers to conflict zones such as Gaza, Ukraine, Sudan, and Libya.
Highlighting domestic progress, he pointed to record rice production that has made Indonesia food self-sufficient and enabled exports to Palestine, with ambitions to become a global grain hub. He pledged to reforest 12 million hectares of degraded land and accelerate the transition to renewable energy, stating, “We are committed to meeting our 2015 Paris Agreement obligations. We aim to achieve net zero emissions by 2060 and we are confident we can achieve it much earlier.” President Prabowo also underlined the urgency of climate change, noting that sea levels near Jakarta are rising 5 cm annually, forcing the construction of a 480-kilometer sea wall to protect the capital.
Key Points: Indonesia-EU Trade Deal
Indonesia and the European Union will sign a long-awaited trade pact in Bali on Tuesday after nearly a decade of negotiations, aimed at reducing risks from global tariff wars. The deal will eliminate tariffs on around 80 percent of Indonesian exports to the EU, benefiting palm oil, textiles, footwear, and fisheries, while opening wider access to Indonesia’s 280 million-strong market. EU Commission President Ursula von der Leyen said the agreement would “help strengthen the supply chains of critical raw materials that we need to power the clean and the digital transition.” The pact also addresses tensions over the EU’s deforestation rules, with promises of “special treatment” for signatories, though activists warn it could spur further forest loss. Implementation is expected by 2027, pending ratification in both jurisdictions. (Jakarta Post)
RI, Canada Sign Trade Pact
Indonesia and Canada signed their first trade agreement on Wednesday during President Prabowo Subianto’s state visit to Ottawa, marking a milestone in Canada’s ties with ASEAN. The Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA), due to take effect in 2026, will cut tariffs on over 95 percent of Canadian exports and boost cooperation in clean tech, critical minerals, and financial services. Prime Minister Mark Carney called the pact “game-changing,” saying it would “fundamentally reshape trade between the two nations.” He added, “We are building our strength at home, diversifying our partnerships abroad and creating a web of new connections to pursue our interests.” (Jakarta Post)