IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 05 Feb 2015 | Removal date: 05 Nov 2015
Still in force

Production subsidy

 On 4 February 2015, the Indonesian Energy Commission to the parliament (Komisi VII DPR-RI) agreed to raise the subsidy for bioethanol and biodiesel. The former will be increased from 2'000 IDR/litre to 3'000 IDR/litre, whereas the latter will be almost tripled from 1'500 to 4'000 IDR/litre. These increases are slightly below the ones proposed by the Ministry for Energy and Mineral Resources (3'000 IDR/litre and 5'000 IDR/litre, respectively).
The Ministry argued this measure was necessary to keep "the producers' productivity"who are facing "high production costs" with ther lower benchmark prices. In particular, the Indonesian government aims to support the local production of crude palm oil, which has been suffering from low market prices. The budget set aside for this subsidy amounts to 28.7 trillion IDR (about 2.21 billion USD).
No particular implementation date has been mentioned in the announcement of the parliamentary commission. However, the subsidy levels were set for the given year 2015.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. The subsidy recipient produces internationally tradable goods. On this metric, the state aid proposed here is discriminatory.
Due to the unavailability of trade data for the year 2014 in the UN COMTRADE database, the list of affected trading partners is based on the trade volumes for 2013.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

241 Ethyl alcohol; spirits, liqueurs & spirits
2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol.; spirits, liqueurs and other spirituous beverages.
220820 Spirits obtained by distilling grape wine or grape marc
220830 Whiskies
333 Petroleum oils & oils of bituminous materials, other than crude
2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic con
271012 Light oils and preparations
271019 Other
351 Paints & varnishes & related products; artists' colours; ink
3814 Organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers.
381400 Organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers.
354 Chemical products n.e.c.
3820 Antifreezing preparations and prepared deicing fluids.
382000 Antifreezing preparations and prepared deicing fluids.
3824 Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included.
382410 Prepared binders for foundry moulds or cores
382440 Prepared additives for cements, mortars or concretes
382460 Sorbitol other than that of subheading 2905.44
382474 Containing hydrochlorofluorocarbons (HCFCs), whether or not containing perfluorocarbons (PFCs) or hydrofluorocarbons (HFCs), but not containing chlorofluorocarbons (CFCs)
382478 Containing perfluorocarbons (PFCs) or hydrofluorocarbons (HFCs), but not containing chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs)
382479 Other
382481 Containing oxirane (ethylene oxide)
382490 Other
375 Articles of concrete, cement & plaster
3824 Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included.
382450 Nonrefractory mortars and concretes

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