The Paradox of Downstream Mining Industry Development in Indonesia: Analysis and Challenges

Development of downstream on the mining industry has been encouraged by the government of Indonesia these past years. With the increasing demand for nickel ore, the government focused on implementing downstream in this sector. Establishing an export ban and domestic processing requirement on nickel...

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Main Authors: Atik Krustiyati, Gita Venolita Valentina Gea
Format: Article
Language:English
Published: Sriwijaya University 2023-07-01
Series:Sriwijaya Law Review
Subjects:
Online Access:http://journal.fh.unsri.ac.id/index.php/sriwijayalawreview/article/view/2734
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author Atik Krustiyati
Gita Venolita Valentina Gea
author_facet Atik Krustiyati
Gita Venolita Valentina Gea
author_sort Atik Krustiyati
collection DOAJ
description Development of downstream on the mining industry has been encouraged by the government of Indonesia these past years. With the increasing demand for nickel ore, the government focused on implementing downstream in this sector. Establishing an export ban and domestic processing requirement on nickel ore caused the EU to challenge Indonesia before the DSB WTO. In its report to the Panel, it was concluded that Indonesia had violated the provisions of GATT 1994. While it is understandable that Indonesia has absolute sovereignty over its natural resources, it is also bounded to international organisations and regulations, for it has expressed its consent. This paper aims to examine the analysis by the Panel on what caused Indonesia to decide as the losing party and how Indonesia would implement the development downstream in the middle of its sovereignty and obligations on an international level. Through a juridical normative method, it is concluded that Indonesia had failed to comply with the provisions of GATT 1994 that obliged it. It does not mean it has no sovereignty towards its natural resources, for it has agreed to be bound by the provisions. In order to exercise downstream development, it is recommended that Indonesia create national policies or regulations related to adhering to the provisions of the WTO. A cautious approach to governing the downstream may prevent potentially damaging disputes.
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spelling doaj.art-5d526f5993ca480cb00deab5db54abdd2024-03-03T14:28:38ZengSriwijaya UniversitySriwijaya Law Review2541-52982541-64642023-07-017233534910.28946/slrev.Vol7.Iss2.2734.pp335-349592The Paradox of Downstream Mining Industry Development in Indonesia: Analysis and ChallengesAtik Krustiyati0Gita Venolita Valentina Gea1University of SurabayaUniversity of SurabayaDevelopment of downstream on the mining industry has been encouraged by the government of Indonesia these past years. With the increasing demand for nickel ore, the government focused on implementing downstream in this sector. Establishing an export ban and domestic processing requirement on nickel ore caused the EU to challenge Indonesia before the DSB WTO. In its report to the Panel, it was concluded that Indonesia had violated the provisions of GATT 1994. While it is understandable that Indonesia has absolute sovereignty over its natural resources, it is also bounded to international organisations and regulations, for it has expressed its consent. This paper aims to examine the analysis by the Panel on what caused Indonesia to decide as the losing party and how Indonesia would implement the development downstream in the middle of its sovereignty and obligations on an international level. Through a juridical normative method, it is concluded that Indonesia had failed to comply with the provisions of GATT 1994 that obliged it. It does not mean it has no sovereignty towards its natural resources, for it has agreed to be bound by the provisions. In order to exercise downstream development, it is recommended that Indonesia create national policies or regulations related to adhering to the provisions of the WTO. A cautious approach to governing the downstream may prevent potentially damaging disputes.http://journal.fh.unsri.ac.id/index.php/sriwijayalawreview/article/view/2734downstream industryexport restrictionnickel ore
spellingShingle Atik Krustiyati
Gita Venolita Valentina Gea
The Paradox of Downstream Mining Industry Development in Indonesia: Analysis and Challenges
Sriwijaya Law Review
downstream industry
export restriction
nickel ore
title The Paradox of Downstream Mining Industry Development in Indonesia: Analysis and Challenges
title_full The Paradox of Downstream Mining Industry Development in Indonesia: Analysis and Challenges
title_fullStr The Paradox of Downstream Mining Industry Development in Indonesia: Analysis and Challenges
title_full_unstemmed The Paradox of Downstream Mining Industry Development in Indonesia: Analysis and Challenges
title_short The Paradox of Downstream Mining Industry Development in Indonesia: Analysis and Challenges
title_sort paradox of downstream mining industry development in indonesia analysis and challenges
topic downstream industry
export restriction
nickel ore
url http://journal.fh.unsri.ac.id/index.php/sriwijayalawreview/article/view/2734
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