The European Commission (EC) has imposed temporary duties ranging from 8 to 18 percent on imports of subsidized biodiesel from Indonesia, the commission announced on Tuesday (August 13).

The new tariff will be effective starting today and until the next four months and opened to extends the policy in five years. The tariffs target hit several major producers such as PT Caliandra Perkasa (8%), Wilmar Group (15.7%), Musim Mas Group (16.3%), Permata Group and other exporters (18%).

“The new import duties are imposed on a provisional basis and the investigation will continue with a possibility to impose definitive measures by mid-December 2019,” the EC executive said in a statement.

The European Commission launched an anti-subsidy investigation in December following a complaint by the European Biodiesel Board. The investigation team “found that Indonesian biodiesel producers benefit from grants, tax benefits and access to raw materials below-market prices. This inflicts a threat of economic damage to EU producers,” said the statement.

Based on the European Commission’ statement, during January to September, Indonesia’ biodiesel market share has jumped to 3.3% or by 516.08 million tons. In the same period in 2017 and 2016 Indonesia’ biodiesel market share was 0.2% and 0.3%.