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

Krustiyati, J.M. Atik and Gea, Gita Venolita Valentina (2023) The Paradox of Downstream Mining Industry Development in Indonesia: Analysis and Challenges. Sriwijaya Law Review, 7 (2). pp. 335-349. ISSN 2541-5298; E-ISSN 2541-6464

PDF Atik Krustiyati_The Paradox of Downstream Mining Industry Development in Indonesia.pdf Download (1MB)

Abstract

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 provi- sions of GATT 1994. While it is understandable that Indonesia has absolute sovereignty over its natural resources, it is also bounded to international or- ganisations 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 interna- tional level. Through a juridical normative method, it is concluded that Indo- nesia 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 de- velopment, it is recommended that Indonesia create national policies or regu- lations related to adhering to the provisions of the WTO. A cautious ap- proach to governing the downstream may prevent potentially damaging dis- putes.

Item Type:	Article
Uncontrolled Keywords:	downstream industry; export restriction; nickel ore
Subjects:	K Law > K Law (General)
Divisions:	Faculty of Law > Department of Law
Depositing User:	Ester Sri W. 196039
Date Deposited:	03 Aug 2023 06:46
Last Modified:	03 Aug 2023 06:46
URI:	http://repository.ubaya.ac.id/id/eprint/44644

Actions (login required)

View Item