ASIATODAY.ID, JAKARTA – Coordinating Minister for Maritime Affairs and Investment of the Republic of Indonesia Luhut Binsar Pandjaitan reported that the European Union (EU) is starting to recognize that Indonesia has the right to ban nickel ore exports.
“They (the European Union) have now started to recognize that we have the right to do that (ban nickel ore exports),” said Luhut at the Parliament Building, Jakarta, Wednesday, June 5 2024.
In a working meeting with the Budget Agency, Luhut revealed that his team had negotiated with the EU regarding the EU’s lawsuit at the World Trade Organization (WTO) regarding the ban on Indonesian nickel exports.
“I also want to report that our team and the European Union team have been negotiating, (they) are willing to negotiate regarding our ban on exporting nickel ore,” said Luhut at the meeting.
Apart from starting to understand that banning nickel ore exports is Indonesia’s right, Luhut also said that the European Union team asked Indonesia not to ban exports of nickel derivatives, such as exports of precursors.
“We are not prohibiting (precursor exports), but I say we also have the right to supply. “You (the European Union) can’t dictate to us,” said Luhut.
Luhut explained that the background to Indonesia’s ambition in fighting for a ban on nickel exports was to develop the nickel downstream industry in the country.
Processing nickel ore into stainless steel, he said, brings high added value.
“Nickel ore becomes stainless steel, there the increase (value) is very high,” said Luhut.
On this occasion, Luhut emphasized his ambition to make Indonesia a determinant of nickel prices in the world. “This nation is a great nation,” said Luhut.
Previously, Indonesia was declared defeated in the European Union’s lawsuit at the WTO in October 2022. The lawsuit was related to the ban on the export of raw minerals, especially nickel, abroad which was set to take effect on January 1 2020.
Based on the results of the trial, Indonesia was declared defeated because its downstream industry was considered immature by the WTO. According to the WTO, a country that prohibits the export of a commodity must have a truly developed industry, while Indonesia is considered to have not achieved this capability.
Indonesian President Joko Widodo firmly asked to continue fighting the European Union’s lawsuit over the nickel downstream policy. (ATN)
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