Countervailing Duties on Indonesian Biodiesel: WTO Dispute Resolution and the Use of Arbitration Under Dsu Article 25

Authors

  • Yordan Gunawan Faculty of Law, Universitas Muhammadiyah Yogyakarta, Indonesia
  • M. Fabian Akbar Faculty of Law, Universitas Gadjah Mada, Indonesia

DOI:

https://doi.org/10.32890/uumjls2026.17.1.6

Keywords:

Biodiesel, countervailing duties, dispute settlement mechanism, trade dispute, WTO

Abstract

This research aims to analyse the legal dispute between Indonesia and the European Union (EU) concerning countervailing duties on biodiesel imports. Employing a normative qualitative legal research method, the study relies on both primary data, such as WTO legal instruments, panel reports, and dispute settlement documents, and secondary sources, including academic journals, policy papers, and relevant news reports. A case study approach was used to critically assess the role of the World Trade Organization (WTO) in resolving the dispute and the potential of arbitration as an alternative mechanism. The findings indicated that arbitral considerations largely favour Indonesia, affirming that the EU’s measures are inconsistent with WTO rules. Practically, the research suggests arbitration as a future-oriented instrument for trade dispute settlement, while highlighting its limitations in implementation and relevance for policymakers and legal practitioners. Academically, this study contributes by offering a critical perspective on how WTO law interacts with state sovereignty and provides insight into the underexplored role of arbitration in international trade disputes, thereby addressing gaps in existing literature. The research argues that arbitration provides a fair mechanism for dispute resolution. However, if arbitration cannot be achieved, parties may resort to litigation before national courts, or, where jurisdiction has been previously recognised, seek recourse to an international court. Without mutual consent or an established jurisdictional basis, submission to an international court would not be possible.

Author Biographies

  • Yordan Gunawan, Faculty of Law, Universitas Muhammadiyah Yogyakarta

    Yordan Gunawan is a Senior Lecturer at the Faculty of Law, Universitas Muhammadiyah Yogyakarta, where he previously served as the Director of the International Relations Office. He is also a member of the Indonesian Advocates Association (IKADIN). Yordan completed his secondary education at SMA Negeri 1 Martapura, OKU Timur, Sumatera Selatan.

    Yordan holds a Bachelor of Laws and a Master of Laws in Public International Law from the School of Law, Universitas Muhammadiyah Yogyakarta. In addition to his notable academic and professional accomplishments, Yordan Gunawan earned his Master Business and Administration from the Institute of International Management, National Cheng Kung University, Taiwan, Republic of China, with a scholarship from the Taiwanese government. Throughout his academic journey, Yordan actively engaged in seminars and discussions and made contributions to local publications, providing insights into contemporary legal issues. Furthermore, Yordan is currently pursuing his Ph.D. research in the Department of Law and International Relations at Facultat de Dret, Universitat Pompeu Fabra, Barcelona, Spain. He is a certified mediator recognized by the Supreme Court of the Republic of Indonesia. Yordan is also an alumnus of the National Resilience Institute “LEMHANNAS” of the Republic of Indonesia, 2023.

    Yordan has an extensive publication record, with numerous articles published in various national and international journals. He has presented his research at a global level, participating in various international conferences, seminars, and activities held in countries such as Ireland, Turkiye, Taiwan, Thailand, Singapore, the United States of America, the Philippines, Azerbaijan, Australia, the Netherlands, the United Kingdom, Belgium, France, Vietnam, Japan, Malaysia, South Korea and many more.

    His primary research interests lie in Public International Law, International Dispute Settlement, the Law of International Organizations, and International Environmental Law. Yordan has also exhibited leadership qualities as the Chairman of the Association of International Offices of Muhammadiyah Higher Education Institutions (ASKUI PTMA), where he oversees more than 70 International Offices in Indonesia. In addition to his notable academic and professional accomplishments, Yordan Gunawan currently holds the position of Chairman of the Special Branch of Muhammadiyah (Pimpinan Cabang Istimewa Muhammadiyah, PCIM) in Spain.

  • M. Fabian Akbar, Faculty of Law, Universitas Gadjah Mada

    M. Fabian Akbar is an Bachelor of Law at the
    Department of International Program for Law and Sharia (IPOLS),
    Faculty of Law, Universitas Muhammadiyah. He is actively working as
    an Editorial Staff at the Scopus-indexed journal "Jurnal Media
    Hukum".
    Beyond his editorial responsibilities, Fabian is also an avid
    writer, penning articles for both international and national journals
    on topics ranging from International Trade to Mechanisms of
    International Conflict Resolution, with a particular emphasis on
    WTO matters. His prolific contributions to scholarly literature reflect
    his deep engagement with pressing issues in global governance and
    international relations, showcasing his analytical acumen and
    commitment to advancing knowledge in his field.

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31-01-2026

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Vol. 17 No. 1 (2026): UUM Journal of Legal Studies (UUMJLS) Vol. 17(1), January 2026

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Gunawan, Y., & Akbar, M. F. (2026). Countervailing Duties on Indonesian Biodiesel: WTO Dispute Resolution and the Use of Arbitration Under Dsu Article 25. UUM Journal of Legal Studies, 17(1), 94-111. https://doi.org/10.32890/uumjls2026.17.1.6

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Identifiers DOI 10.32890/uumjls2026.17.1.6 OpenAlex W7128523129 Scopus 105029279566