Arifin Tasrif, Indonesia's Minister of Energy and Mineral Resources (ESDM), revealed the final decision of the World Trade Organization (WTO) case on the nickel export ban, in which Indonesia's policy was found to be in violation of WTO rules.
Meeting with the Seventh Committee in the Indonesian Parliament on 21 November 2022, Arifin said that the final decision of the WTO Panel on the Indonesian export ban case referred to in the WTO DS 192 dispute found that the export ban policy and the country's mineral extraction obligations and processing were proven to be in violation of WTO rules.
He said in his speech that the WTO's final panel report was released on October 17, 2022. Seeing the decision, Arifin believes there is still an opportunity to appeal the nickel export ban to the WTO. The Indonesian government also believes that there is no need to change regulations or even withdraw policies deemed inappropriate before the dispute Settlement Body (DSB) has adopted a dispute decision.
Arifin said the government believes that there is no permanent legal determination of the panel's decision and therefore there is still an opportunity for appeal. Regarding the final findings of the WTO panel report on nickel, the WTO also rejected the Indonesian government's defence of the country's limited nickel reserves and good mining practices.
"The final report will be distributed to other WTO members on 30 November 2022 and will be included in the DSB agenda on 20 December," the WTO decision read.
It is understood that Bahlil Lahadalia, Minister of Investment and Director of the Investment Coordination Agency of Indonesia, has said that if the EU wins the case, the Indonesian government will make new regulations, such as increasing the export tax of nickel ore commodities, so that the EU countries will reconsider the decision to import nickel ore from Indonesia; APNI, Indonesia's nickel miners' association, said it could limit nickel grades to a maximum of 1.6 percent if it is forced to reopen exports.
Event review:
The EU request stems from the Indonesian government's ban on nickel exports on January 1, 2020.
Ahead of the ban, Indonesia's investment minister BKPM Bahlil Lahadalia held talks with the country's mine and smelter owners. With exports banned, mines are required to sell their minerals to local smelters.
On 12 November 2019, BKPM, the Indonesian Nickel Miners' Association (APNI) and the Association of Processing and Refining Companies (AP3I) agreed to sell nickel ore to domestic smelters or processing plants at a price of US $30 per wet tonne.
On 22 December 2019, one of the consumers of Indonesian nickel, the European Union, submitted a notice of the lawsuit to the Indonesian Ambassador in Geneva.
Not only that, but EUROFER, the European steelmakers' association, supports the EU's plan to Sue the WTO. The main reason is that 55% of the raw material used in European stainless steel plants is nickel ore.
On December 12, 2019, news of the EU lawsuit was followed by a response from President Joko Widodo, who said he was not afraid of the lawsuit and was ready to face it.
