Indonesia to appeal against WTO’s EU-friendly ruling on nickel ore export ban
- Nation implemented the ban in 2020 to help its own sector and coffers, but EU said the move unfairly limited access to nickel ore
- Indonesia says WTO will soon come out in favour of the European bloc, so it will therefore appeal; experts say Jakarta is unlikely to win
Indonesia plans to appeal against the World Trade Organization’s EU-leaning ruling on its nickel ore export ban, in what analysts say is an unwinnable case that will create an uncertain investment climate in Southeast Asia’s biggest economy.
The WTO’s ruling supporting the European Union’s complaint against Jakarta, and the government’s decision to appeal, were revealed on Monday by Arifin Tasrif, energy and mineral resources minister, ahead of the organisation’s formal announcement on November 30.
In January 2020 Indonesia implemented its ban, ahead of schedule, to generate higher-value nickel products and help Jakarta become part of the electric vehicles (EVs) global supply chain; the nation has the world’s largest reserve of nickel ore.
However, Brussels viewed the move as a violation of Article XI of the 1994 General Agreement on Tariffs and Trade (GATT), which says all WTO members must not prohibit or restrict imports or exports, other than duties, taxes and other such charges. The European bloc said Jakarta’s restrictions unfairly limited access to nickel ore and other raw materials.
The export ban, which has created an artificial nickel shortage, has disrupted Europe’s stainless-steel industry employing around 230,000 workers. Nickel is the main component of stainless steel.
Arifin told a House of Representatives hearing that the WTO’s decision “does not yet have permanent legal force so there is still an opportunity for appeal”. He also said policies do not need to be changed or revoked before the body’s Dispute Settlement Body (DSB) makes a final decision.