European Union Sues Indonesia Regarding WTO Nickel, Trade Minister Lutfi: "No, It Can't Be"

Minister of Trade, M. Lutfi. (Photo: Doc. Of the Ministry of Trade)

JAKARTA - The European Union (EU) filed a lawsuit against Indonesia to the World Trade Organization (WTO) regarding the ban on nickel exports. The Minister of Trade, Muhammad Lutfi, said that Indonesia was ready to face the lawsuit. Because this is part of trading.

"Europe interferes with us saying that we trade unfairly because we are holding our nickel to Europe. Now we are being prosecuted in Europe, yes we do. Because the dispute is a common thing and should not be offended. we have to face it", he said, during the 'Economy Recovery: How to Accelerate Economic Growth' event, Wednesday, January 27.

However, Lutfi explained, the problem with the EU is not because of the nickel ore, but because Indonesia has exported finished goods, not raw goods anymore.

"I said the problem is not because of the nickel, it doesn't exist, they only buy nickel from us very small. Not up to 2 percent. They are afraid that we are supposed to export raw goods, but we have turned (exporting) into industrial goods", he said.

As is well known, the Indonesian government has banned imports of nickel ore. This rule is contained in the Regulation of the Minister of Energy and Mineral Resources (Permen ESDM), the ban on the export of nickel ore commodities takes effect as of January 1, 2020.

Among other things, the export prohibition is to meet domestic needs and to try to process it domestically so that it becomes a product that has added value.

For your information, the certainty of the European Union suing Indonesia in the nickel dispute case was obtained on Thursday, January 14, 2021. Previously, President Joko Widodo (Jokowi) asked to immediately prepare an answer to the lawsuit filed by the European Union.

"Yes, face it. Prepare the best lawyers so they can win the lawsuit", said Jokowi last week.

Jokowi advised not to let Indonesia be sued to make Indonesia resign. Because of that, it is necessary to be prepared so that they do not only fight back but also win the case.