TEMPO.CO, Jakarta — Commerce Minister Zulkifli Hasan alias Zulhas explained that the government will appeal after losing a European Union lawsuit in the ban case export of nickel ore at the World Trade Organization (WTO). However, the detailed legal steps have yet to be released.

“But there’s been a lot of news. So our first step, of course, is a call,” he said after meeting Hotman’s lawyer Paris Hitapea at Johny’s Coffee Shop, Kelapa Gading, North Jakarta, Saturday, December 3, 2022.

Indonesia lost the case against the nickel ore export ban in WTO. The laws and regulations found to have violated WTO provisions are the Mining and Coal Extraction Act No. 4 of 2009, Minister of Energy and Mineral Resources Regulation No. 11 of 2019 and the Second Amendment Regulation of the Minister of Energy and Mineral Resources No. 25. of 2018 relating to the Exploitation of Mines and Coal Mines.

Also, Regulation of the Minister of Commerce Number 96 of 2019 regarding provisions for the export of processed and refined mining products. Finally, the Regulation of the Minister of Energy and Mineral Resources Number 7 of 2020 regarding the procedures for granting areas, licenses and reporting on mining and coal business activities.

Lily: On Indonesia losing the WTO case, Energy Watch: This is our resource, fight it!

In the results of the final ruling issued last October, it was stated that Indonesia’s export policy and requirement to process and refine nickel ores was found to have violated WTO provisions, Article XI.1 of the GATT 1994. This violation cannot be justified by Articles XI.2 (a) and XX (d) GATT 1994.

The Panel also rejects the defense put forward by the Government of Indonesia regarding the limited amount of national nickel reserves and the implementation good mining practices (environmental aspects) as a basis for defence. The final ruling will be circulated to other WTO members on November 30, 2022. Then, it will be placed on the DSB agenda on December 20, 2022.

Zulkifli alias Zulhas said the government would focus on appeals first. As for the next panel, it has not yet specified when it will be formed. “Let’s appeal first, later how we’re going to broadcast it, that’s all for now. We are appealing,” he said.

Previously the same was conveyed by President Joko Widodo alias Jokowi. Jokowi said the government was adamant about banning the export of nickel ore.

“It’s good to lose. I convey to the minister, appeal,” Jokowi said during the opening of the national investment coordination meeting at the Ritz-Carlton in central Jakarta on Wednesday, November 30, 2022.

Maintain the ban on the export of raw materials

After losing the case, Jokowi said he would extend the export ban on mining raw materials to agricultural products. The next products that Jokowi will ban the export of as raw materials are coffee bauxite.

“Try not to export it as raw materials. We have been exporting it for hundreds of years, stop. Look for investors, invest in it so that there is added value,” Jokowi said.

Jokowi said the commodity export ban has proven to increase state revenue. In the nickel sector, Jokowi said the country typically earns IDR 20 trillion in revenue from the export of its raw materials. However, when it has been processed, the value received can skyrocket up to Rp. 300 trillion.

In this way, Jokowi qualifies the trade balance as a surplus for 29 months. In fact, Jokowi claimed that before, the trade balance was always negative.

“If another country sue, yes, it’s the other country’s right to sue, because yes (they) are bothered,” Jokowi said. “If we are sued, we are afraid, we will back down, we won’t, we won’t become a developed country.”

ESDM Minister Arifin Tasrif also said the government would appeal as he felt the panel’s decision did not yet have a final decision. “There is always a possibility of appeal and there is no need to change regulations or even revoke policies that are not in compliance before the decision on the dispute is adopted by the DSB,” said Arifin.

Mr. JULNIS FIRMANSYAH

Read also : A number of risks if Indonesia loses WTO nickel export ban appeal

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