11/06/2017 ( Netralnews ) - JAKARTA, NETRALNEWS.COM - The Ministry of Commerce, through the Directorate General of Foreign Trade, is fighting against a decision made by World Trade Organization (WTO) Dispute Settlement Body (DSB) panel at a higher stage, the Appellate Body Forum, for certain fatty alcohols dispute from Indonesia in Geneva, Switzerland.

Previously, Indonesia objected to the decision of the DSB panel that won the EU over the implementation of Article 2.3 & 2.4; And Article 3.1 & 3.5 Anti-Dumping Agreement (ADA) and Indonesia only won claims related to article 6.7 ADA regarding transparency of investigation report. The panel's decision resulted in a 2: 1 position for the EU that was unfavorable to Indonesia.

"Indonesia appealed to AB-WTO which will focus on SEE because it has significance especially for methodology of determining normal value for export price and domestic price for overseas affiliated producer/exporter," explained Director General of Foreign Trade Oke Nurwan  in Jakarta, Saturday (6/10).

In terminology, SEE explains that if the parent company and its subsidiaries are controlled by the parent company, this condition is said to be a unitary economic unit (SEE).

"SEE is used by almost all Indonesian producers/exporters in the palm oil sector. The WTO panel's decision on this SEE if won by Indonesia, may be a jurisprudence for similar cases in the future. Indonesia will be firm in facing the EU stance and expect positive results from the WTO AB decision," said Pradnyawati, Trade Security Director.

The Indonesian lawsuit originated from the European Commission (EC) anti-dumping investigation, which began on August 13, 2010 based on the application of two domestic industries of certain fatty alcohols in the EU, namely Cognis Gmbh and Sasol Olefins & Surfactants Gmbh.

From the results of its investigation, the EU imposed Anti Dumping Import Duty (BMAD) effective on November 8, 2011 to November 2016 of €45.63/ MT - 80.34/MT for Indonesian producers/exporters.

Following the release of this EU decision, Indonesian producers/exporters appealed to the General Court of the EU, with the results of one producer/exporter successfully exempted from application of the BMAD.

Prior to the imposition of BMAD, import of certain fatty alcohols from Indonesia in the EU reached $53.5 million in 2009 and increased 45.16 percent to $112.6 million in 2011.

Following the decision on imposition of BMAD, the value of imports decreased to $109.2 million in 2012. Although it rose to $119.4 million in 2013, it went down the following year by $69.1 million and ended at $58.9 million 2016. For the period after imposition of BMAD (2012-2016), the value of EU imports from Indonesia experienced an declining trend of 20.42 percent.

The share of Indonesian fatty alcohol exports to the EU in 2016 amounted to 13.87 percent or $71.6 million of the total export of certain fatty alcohols Indonesia to the world which reached $515.9 million (source: Trademap). Certain fatty alcohols are derivative chemical products from vegetable oils (palm oil).

Certain fatty alcohols can be used as the main ingredient of surfactants for detergent, body care, and cosmetic products.

The demand for certain fatty alcohols of Indonesia from China, the EU, the United States, Singapore and South Korea, has resulted in certain fatty alcohols being one of Indonesia's top export products.