ANNOUNCEMENT 04 Feb 2015In February 2015, the government of Indonesia announced a change in production support.
NUMBER OF INTERVENTIONS
Press release from the Energy Ministry (in Bahasa Indonesia)
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.