Jakarta. The United Kingdom has extended countervailing duties on biodiesel imports from Indonesia for another five years while exempting sustainable aviation fuel (SAF) from the trade measure, following a review by the UK's Trade Remedies Authority (TRA).

The UK's Secretary of State accepted the TRA's recommendation to maintain the current countervailing duty rates. The decision, published by the UK government on July 2 and effective from July 3, extends the existing duties until Dec. 10, 2029, replacing a previous taxation notice issued in 2020.

The review also narrowed the scope of the duties by explicitly excluding sustainable aviation fuel, which the TRA said is not considered a "like product" to biodiesel. The exemption applies to SAF in both pure form and blended products until Dec. 10, 2029. The transition review began in December 2024, before the existing measures were due to expire. 

The duties remain unchanged for Indonesian exporters, ranging from 8% to 18%, depending on the producer. Ciliandra Perkasa faces the lowest duty at 8%, while exporters, including the Permata Group and companies not individually listed, are subject to an 18% rate. Producers in the Wilmar Group face a 15.7% duty, while the Musim Mas Group remains subject to a 16.3% rate.

The measure applies to biodiesel derived from non-fossil sources, including fatty-acid mono-alkyl esters and hydrotreated vegetable oil, imported into the UK from Indonesia.

Indonesia is the world's largest producer and exporter of palm oil, the primary feedstock for its biodiesel industry. The sector has faced trade disputes in several export markets over subsidies and environmental concerns, while Jakarta has sought to expand exports of higher-value renewable fuels, including sustainable aviation fuel, as part of its downstream processing strategy.

Despite those trade challenges, Indonesia's palm oil exports have continued to grow. Official data showed the country exported $9.59 billion worth of palm oil products in the first five months of 2026, up 7.7% from $8.90 billion in the same period a year earlier. Export volumes also rose 7.4% year-on-year to 8.92 million metric tons from 8.30 million tons, according to the Central Statistics Agency (BPS).

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