Economic Analysis Series: TRADE AND INDUSTRY BRIEF, November 2022

The World Trade Organization’s dispute settlement body (DSB) viewed that Indonesia’s ban on the export of nickel ore had violated the regulations. Nevertheless, the Indonesian government is determined to lodge an appeal against the DSB’s decision and continue the plan to downstream the nickel processing domestically. The government’s decision to appeal is in line with the spirit of increasing the value-added of natural resources as mandated by the constitution. However, the plan should be backed up by more convincing arguments that also comply with WTO regulations. In addition, Indonesia must prepare the contingency plan should the appeal be unsuccessful. The November 2022 issue of the Trade and Industry Brief proposes some arguments that can strengthen Indonesia’s appeal, and alternative policies that can be taken should the DSB decide against Indonesia’s appeal.

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