The Indonesian Ministry of Commerce has threatened to impose higher tariffs on EU dairy products in response to the proposed measure by the bloc on palm oil biodiesel, the BTA quoted France as saying.
The warning could exacerbate the trade dispute between the EU and Indonesia, which is the world's largest producer of palm oil. The EU plans to reduce palm oil-based biofuels by 2030.
Indonesia, which is the largest producer of palm oil, plans to raise the import duties on dairy products from EU countries to 8-18 percent.
The intention of raising the tariffs was announced by the Minister of Commerce of the Asian country Enggartiasto Lukita. The measure is in response to the Union's plan to impose similar duties on Indonesian palm oil biodiesel, he added.
A project initiated by Turkish experts to turn olive mill wastewater from olive production into industrial raw materials and products such as biodiesel and animal feed has received the support of a European Union program.