UK TRA proposes maintaining Indonesian biodiesel duties, excludes SAF from scope

The UK Trade Remedies Authority has proposed keeping countervailing duties on imports of Indonesian biodiesel in place and updating the product definition to exclude sustainable aviation fuel, according to a statement of essential facts published Dec. 12.

The transition review, launched Dec. 6, 2024, examined whether the duties -- currently set between 8% and 18% -- remain necessary under the UK's post-Brexit trade framework. The TRA said the existing measures continue to address the impact of subsidized Indonesian biodiesel on the UK industry.

As part of the review, the agency recommended narrowing the product scope to exclude SAF. The proposed definition would apply to "fatty-acid mono-alkylesters or paraffinic gasoils obtained from synthesis or hydrotreatment of non-fossil origin in pure form or as included in a blend, excluding sustainable aviation fuel."

Stakeholders have been invited to submit comments through the Trade Remedies Service by Jan. 8, 2026.

The period of investigation covered Oct. 1, 2023, to Sept. 30, 2024.

The process has unfolded without participation from Indonesia. In a letter dated May 21 and released by the TRA in June, Indonesia's trade ministry stated that it has not exported biodiesel to the UK and does not anticipate doing so, citing rising domestic demand.

Jakarta also pointed to its ongoing World Trade Organization challenge against similar EU measures and said it hoped the UK review would be conducted "with fairness and openness."

The TRA's final recommendation has not yet been issued.

The Indonesian government aims to implement its 50% biodiesel blending mandate, known as B50, in the second half of 2026, raising it from 40% in 2025, according to energy ministry officials.

Since 2024, Indonesia has announced plans to increase its biodiesel mandate from the current 40% target to 50% in 2026, which would divert a significant portion of the palm oil intended for exports to domestic biofuel producers.

The country subsidizes its domestic biodiesel blending program using levies collected on exports of crude and refined palm oil products.

Indonesia's biodiesel consumption reached 12.25 million kiloliters as of Nov. 10, inching closer to the 2025 target of 15.6 million kl, driven by increased domestic demand.

Biodiesel consumption increased by 19.5% year over year.

The Indonesian government allocated 15.6 million kl of biodiesel for consumption in 2025 to support its target of a 40% blending mandate, commonly referred to as B40.

The Asian biodiesel market remained stable on Dec. 12 amid expectations of lower prices due to weakness in feedstock costs.

Platts, part of S&P Global Energy, assessed UCOME FOB Straits at $1,259/metric ton on Dec. 12, unchanged day over day.

Platts assessed UCOME FOB North China at $1,155/mt on Dec. 12, unchanged day over day.