WTO “Nickel War” Indonesia Nickel Miners Association supports the government’s ban on the export of nickel ore
According to the news, “No matter what, we must fight!” These are Indonesian President Joko Widodo (Joko Widodo) on the European Union (EU) and the World Trade Organization (WTO) expert group on Indonesia’s ban on the export of nickel ore (raw material) The firm remarks conveyed by the lawsuit filed by the policy.
“Don’t drag us into the WTO because we have stopped sending raw materials. We will fight at all costs,” President Joko said at the “Kompas100 CEO Forum” seminar on Thursday (November 18, 2021).
Joko said that during the G20 summit in Rome, Italy, there were indeed many national leaders who paid attention to Indonesia’s firm position. At the same time, maintain the policy direction of increasing the added value of domestic minerals.
At the same time, at the WTO Dispute Settlement Group meeting, Jerry Sambuaga, the head of the Indonesian delegation and the Deputy Minister of Trade of the Republic of Indonesia, said some time ago that the reason for banning the export of primary nickel products can be based on the following reasons: WTO regulations, that is in line with 1995 Reasons for the establishment of WTO in 2010.
He emphasized that nickel is a strategic commodity in Indonesia, which is very important to the Indonesian economy and is also a non-renewable resource.
“Therefore, for the benefit of the community and sustainability, Indonesia has the right to restrict trade,” Jerry said in a statement to the media on Sunday (21/11/2021).
He went on to say that Indonesia has the right to regulate the trade of its strategic resources, especially for the benefit of the wider community and the benefit of a sustainable economy.
According to data from the Ministry of Energy and Mineral Resources (ESDM) in a pamphlet entitled “Indonesia Nickel Investment Opportunities” in 2020, Indonesia has 72 million tons of nickel reserves. This is a staggering amount, because these reserves account for 52% of the world’s total nickel reserves, reaching 139,419,000 tons.
Nickel is on the rise because it is one of the main components in the manufacture of electric vehicle (EV) batteries, which is the current world trend.
As the owner of the world’s largest nickel reserves, the government seeks to optimize the use of nickel in order to realize economic and national interests.
“Nickel export restrictions are part of this,” Jerry Sambuaga said.
He hopes that the nickel-based industry can also take this development momentum. Therefore, under the authorization of President Jokowi, the nickel trade and industry provide the highest added value.
Septian Hario Seto, Deputy Minister of Investment and Mining Coordination of the Ministry of Ocean Affairs and Investment Coordination, stated in an official statement on Friday (November 19, 2021) that the European Union believes that Indonesia has violated the WTO’s commitment to providing the most extensive international trade channels to members. , Including raw nickel products. They believe that Indonesia has clearly violated Article XI:1 of the 1994 GATT.
The Indonesian Nickel Miners Association (APNI) has supported the government from the very beginning in facing EU lawsuits regarding the export ban on nickel ore. APNI Secretary-General Meidy Katrin Lengkey said that the government’s ban on the export of nickel ore is aimed at creating domestic nickel downstream.
APNI ensures that the nickel ore export ban will benefit domestic smelters. However, APNI has asked the government to improve a number of regulations on the nickel trading system so that miners and smelter managers can be treated fairly.
“In other words, we require domestic smelters to abide by the rules. What are the rules? The HPM (reference price of minerals, in red) on the existing candies is yes, and it is next. This is just us. If the miners use the government We will be punished for selling at a price other than the prescribed price. In the end, we were warned three times, four times, and our license was revoked,” Media said recently.
The Regional Representative Committee of the Republic of Indonesia (DPD) also supports the policies of the Joko government. DPD RI Chairman La Nyala Mahmud Mattalitti firmly supports Jokowi’s policy and stated that Indonesia does not need to fear the threat of the European Union.
“Now is the right time to show Indonesia as a nation. It proves that we are a strong country,” LaNyalla said in a written statement on Friday (November 19, 2021).
The senator from East Java hopes that the government will have a clear commitment and be consistent in formulating every policy.
“There must be a commitment from the government. Don’t let the president’s words be stifled by cowardice. We will support the president in keeping with his attitude,” he explained.