Indonesia could make a complaint to the World Trade Organization if the European Union imposes penalties over the country’s biodiesel exports and subsidies, an industry group said on Friday, after the two sides reached a standoff in talks.

Indonesian government and industry officials held two days of biodiesel talks with EU delegates in Jakarta last week, to resolve a long-running probe into dumping and illegal subsidies.

Indonesia is the world’s top producer of the palm oil used to make biodiesel, with the European Union taking more than 80 percent of its biodiesel exports of 1.5 million tonnes last year, industry officials say.

In its investigation, the EU last month began registering more imports of biodiesel from Argentina and Indonesia, making it more likely the bloc will place duties on the two countries in the next few months.

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