The World Trade Organization (WTO) dispute settlement body or DSB viewed that Indonesia’s ban on the export and refining of nickel minerals had violated regulations. Responding to the verdict, the Energy and Mineral Resources Ministry (ESDM) said Indonesia will appeal the court verdict.
"The government argues that the panel's decision does not yet have permanent legal force, so there is still an opportunity for appeal and there is no need to change regulations or even revoke policies before the disputed decision is adopted by the DSB," said ESDM Minister Arifin in a working meeting with members of House Commission VII on Monday, November 21.
Arifin maintains that the government would keep the mineral (nickel) downstream policy by accelerating the construction of smelters.
The regulations highlighted in the WTO trial include Law No.4/2009 concerning Mineral and Coal Mining, Minister of Energy and Mineral Resources Regulation No.11/2019 the second amendment to the Regulation of the Minister of Energy and Mineral Resources No. 25/2018 concerning Mineral and Coal Mining.
In the final ruling, it is stated that the export policy and the obligation to process and refine nickel minerals in Indonesia violate the provisions of the WTO Article XI.1 GATT 1994. This policy cannot be justified by Article XI.2(a) and XX(d) GATT 1994.
The Panel also rejected the defense submitted by the Government of Indonesia regarding the limited amount of national nickel reserves and good mining practices. The final decision will be distributed to other WTO members on November 30 before it will be included in the DSB agenda on December 20.
Image source: TEMPO/M Taufan Rengganis
