Jakarta, CNBC Indonesia – Energy and Mineral Resources (ESDM) Minister Arifin Tasrif revealed that Indonesia has lost the European Union’s case at the World Trade Organization’s (WTO) Dispute Settlement Body (DSB) over the matter to the ban on the export of nickel ore from the beginning of 2020.
According to Arifin, the decision was the result of a WTO panel decision that was filed in the DS 592 dispute. The panel’s final report was released on October 17, 2022.
“Decided that the export policy and the obligation to process and refine nickel ores in Indonesia violated the provisions of WTO Article XI.1 GATT 1994 and cannot be justified by Articles XI.2(a) and XX ( d) GATT 1994,” Arifin said in a joint meeting. Commission VII DPR RI, Monday (21/11/2022).
The final panel report also contains a panel rejecting the defense presented by the Government of Indonesia regarding the limited number of national reserves of nickel and the implementation of good mining practices (environmental aspects) as a basis for the defence.
At least, there are several laws and regulations that are said to violate WTO provisions. Firstly, the law number 4 of 2009 on the extraction of minerals and coal (Minerba law).
Second, Regulation of the Minister of Energy and Mineral Resources Number 11 of 2019 concerning the Second Amendment to the Regulation of the Minister of Energy and Mineral Resources Number 25 of 2018 relating to mining and coal activities.
Thirdly, the regulation of the Minister of Commerce No. 96 of 2019 on the provisions on the export of processed and refined mineral products. Fourth, Regulation of the Minister of Energy and Mineral Resources number 7 of 2020: Procedures for granting areas, permits and reporting on mining and coal activities.
Earlier, Indonesian President Joko Widodo (Jokowi) again said that due to the ban on the export of raw nickel, Indonesia has been sued at the World Trade Organization (WTO).
President Jokowi said that Indonesia may lose the WTO case, but he believed that the most important thing is to stop exports of raw nickel, Indonesia may change the governance of nickel in the country.
“It looks like we lost (the lawsuit) but it’s okay, our industry has finally been created. So why are you afraid? Losing is okay, thank goodness we won,” Jokowi said at the 100 Economic Workshop held by INDEF and CNBC Indonesia , Wednesday (7/9/2022).
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