Never expected, this is Jokowi's reaction after RI lost at the WTO
Photo: President Joko Widodo (Jokowi) spoke of the world moving without captains in the Friends of BRICS Leaders Dialogue forum, at the BRICS Summit in South Africa, Thursday (24/8/2023). (Screenshot of SABC News youtube)
Jakarta, CNBC Indonesia - Minister of Investment/Head of BKPM Bahlil Lahadalia leaked the reaction of Indonesian President Joko Widodo (Jokowi) when he learned that Indonesia lost the European Union (EU) lawsuit at the World Trade Organization (WTO) last October 2022.
Indonesia lost the European Union's lawsuit at the WTO regarding the nickel ore export ban issued in 2019. Minister Bahlil stated that, after Indonesia lost the lawsuit at the WTO, he then complained directly to President Jokowi.
"What did the President say? Be careful, if a villager becomes the president, the leadership is strong. What did the president say? Mas Bahlil, this country is already independent, this country has a government, and its people are protected by law. You can't give up on any country that wants to put pressure on us to fight the European Union at the WTO," explained Minister Bahlil in a Public Lecture by the Minister of Investment/Head of BKPM at Sebelas Maret University (UNS), quoted on Thursday (24/8/2023).
Bahlil said that the reason the European Union sued Indonesia at the WTO was because the world was currently moving towards green energy and environmentally friendly industries. Where, materials to support these things require nickel.
Nickel as it is known for the raw material needs for electric vehicle batteries. "There are four raw materials for this battery; nickel, cobalt, manganese and lithium," said Bahlil.
Indonesia has three of the four raw materials for electric batteries, namely nickel, cobalt and manganese. Bahlil said that only lithium is not owned by Indonesia.
Therefore, he said that other countries, including the European Union, are not willing to develop the country's industry. This is what led to the tackle on the WTO. "This is world foreign policy to force us not to develop our industry in Indonesia," said Bahlil.
Special Staff to the Minister of Trade, Bara Krishna Hasibuan said that the European Union is currently implementing the provisions of the Enforcement Regulation against Indonesia. In that rule, the EU can assess the losses that may be experienced by countries in the EU from the policy of banning the export of RI's nickel ore.
"Currently the EU is conducting public consultations with EU business actors regarding the general implementation, products, value of loss, form of retaliation and amount of compensation to be imposed. As well as the decision whether or not to apply these provisions to Indonesia. Until now, they have not conveyed this decision to the Government of Indonesia," Bara told CNBC Indonesia, quoted on Tuesday (22/8/2023).
However, Bara believes that the Indonesian government will not remain silent. The government, he said, had expressed objections to the EU's move to implement the Enforcement Regulation.
This is because the process of dispute over the export ban of RI's nickel ore at the WTO is still ongoing. Moreover, the appellate panel has not yet been formed.
"So the (European Union) should also respect the procedures at the WTO, not by applying the ER and Indonesia's steps for appeals in accordance with WTO provisions (according to the principles of procedure for Indonesia)," he added.
For information, on the European Union's official website or europian-union.europa.eu it is said that the steps to establishing the Enforcement Regulation were after Indonesia submitted an appeal to the WTO Report on the defeat of a lawsuit some time ago.
"The EU Enforcement Regulations allow the EU to enforce international obligations, to which it has agreed among WTO members, when trade disputes are blocked even though the EU has endeavored to follow good faith dispute resolution procedures," the European Union said on its website. .
EU stakeholders have until 11 August 2023 to provide their views on the use of the EU Enforcement Regulations in this case. The actions that can be taken include imposing duties or quantitative restrictions on imports/exports.
"At the same time, the EU will continue efforts to reach a mutually agreed solution to the nickel ore dispute, including continuing to invite Indonesia to join the Multi-Party Interim Appeal Arrangement (MPIA)," explained the site.
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