Coordinating Minister For Maritime Affairs: European Union Starts Acknowledging The Prohibition Of Indonesian Nickel Exports

JAKARTA - The European Union has reportedly begun to admit that Indonesia has the right to ban the export of nickel ore or nickel ore.

"Mereka (Uni Eropa) sekarang sudah mulai mengakui bahwa kita punya hak untuk itu (melarang ekspor bijih nikel)," ujar Menteri Koordinator Bidang Kemaritiman dan Investasi Luhut Binsar Pandjaitan mengutip Antara.

In a working meeting with Banggar, Luhut revealed that his team had negotiated with the European Union (EU) regarding the EU lawsuit at the World Trade Organization (WTO) over the ban on Indonesian nickel exports.

"I also want to report that our team and the European Union team have negotiated, (they) are already willing to negotiate regarding the ban on our export of nickel ore," said Luhut at the meeting.

In addition to starting to understand that the ban on nickel ore exports is Indonesia's right, Luhut also said that the European Union team asked Indonesia not to prohibit exports of nickel derivatives, such as exports of precursors.

"We are not prohibiting (export precursors), but I said we also have the right to supply. You (EU) can't be our dict", said Luhut.

Luhut explained that the background of Indonesia's ambition to fight for the ban on Indonesia's nickel exports is to develop the domestic nickel downstream industry.

The added value of processing nickel ore into stainless steel, he said, brings in high added value.

"Nickel ore (nickel seed) becomes stainless steel, where the increase (value) is very high," said Luhut.

On this occasion, Luhut emphasized his ambition to make Indonesia a determinant for nickel prices in the world.

"This nation is a great nation," said Luhut.

Previously, Indonesia was declared defeated by the European Union's lawsuit at the WTO in October 2022. The lawsuit is related to the ban on raw mineral exports, especially nickel to foreign countries which has been in effect since January 1, 2020.

Based on the results of the trial, Indonesia was declared defeated because the downstream industry was considered immature by the WTO. According to WTO, countries that prohibit the export of a commodity must have a truly developed industry, while Indonesia is considered not to have achieved this ability.

President Joko Widodo firmly asked to continue to fight the European Union's lawsuit over the nickel downstream policy.