Implementation of Domestic Market Obligations on Nickel and Bauxite in Indonesia Under International Trade Regime
Main Article Content
Abstract
Increasing global economic activity has resulted in raising demand on nickel and bauxite ores for manufacturing industries. Foremost demand on the raw materials is consistently increasing for production of friendly environment products, such as battery of electric vehicles (EV). The production of EV battery potentially increases particularly as global transformation to reduce GHG Emissions which cover developed and developing countries. This current situation leads export restrictions on nickel and bauxite to developed countries which purpose for domestic stockpile in developing countries, such as Indonesia. Meanwhile, the measures is supposed to violate Article XI.2(a) GATT 1994 which it is applied without temporary period and there is no essentialness circumstance to implement the restrictions. This emphasized on review opportunities for Indonesia to take into force alternative measures which is consistent with the GATT 1994 provisions. The research is conducted based on legal review with refer to GATT 1994 provisions and Indonesia legal provisions. Based on the review, the researchers find that implementation of Domestic Market Obligations are an exact alternative measure to safeguard domestic stockpile without extremely suffer disruption for global demand. The alternative measures grant balancing allocation between global and domestic demand which could be adjusted regularly according to the further situation faced by the country.
Article Details
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Adam, B., Ahamat, H., & Yahanan, A. (2023). Implementation of Domestic Market Obligations on Nickel and Bauxite in Indonesia Under International Trade Regime. Lex Scientia Law Review, 7(2), 709-740. https://doi.org/10.15294/lesrev.v7i2.63830
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Korinek, Jane and Jeonghoi Kim, “Export Restrictions on Strategic Raw Materials and Their Impact on Trade and Global Supply,” Journal of World Trade 45, no. 2 (2011): 255–81. https://doi.org/10.1787/9789264096448-7-en
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Lewicka, Ewa, Katarzyna Guzik, and Krzysztof Galos, “On the Possibilities of Critical Raw Materials Production from the Eu’s Primary Sources,” Resources 10, no. 5 (2021). https://doi.org/10.3390/RESOURCES10050050
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Matsushita, Mitsuo. “Export Controls of Natural Resources and the WTO/GATT Disciplines”, Asian Journal of WTO & International Health Law and Policy 6, no. 2 (2011): 281-312.
Mcallister, Levi, and Maggie E. Curran, “Biden Invokes Defense Production Act to Secure EV Battery Supply Chain”, Morgan Lewis Online, April 1 (2022). Retrieved from
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OECD Report, “Green Growth and Developing Countries,” Oecd CONSULTATI, no. June (2012): 145.
OECD. OECD Economic Surveys: Indonesia 2016. (Paris: OECD Publishing, 2016). https://doi.org/10.1787/eco_surveys-idn-2016-en
Ore, Iron, et al., Mineral Commodity Summaries 2021 (US Geological Survey: Reston, 2021).
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Paris Agreement 2015
Ramgarhia, Priti. “Tesla Doubling Down on Deals for Nickel Supplies”, TIP RANKS, March 31 (2022). Retrieved from
Rohmadanti, Ira Fadilla, Febriansyah Ramadhan, and Ilham Dwi Rafiqi. "Disharmony of Domestic Refining Provisons for Mineral and Coal in Indonesian Laws and Regulations." Pandecta Research Law Journal 17, no. 1 (2022): 1-7. https://doi.org/10.15294/pandecta.v17i1.31236
Saleh, Ridwan. “Domestic Market Obligation (DMO) Policy and Its Implementation Strategies”, Indonesian Mining Journal 15, no. 1 (2012): 42–58. https://doi.org/10.30556/imj.Vol15.No1.2012.474
Schaffartzik, Anke, Dominik Wiedenhofer, and Nina Eisenmenger, “Raw Material Equivalents: The Challenges of Accounting for Sustainability in a Globalized World,” Sustainability (Switzerland) 7, no. 5 (2015): 5345–70. https://doi.org/10.3390/su7055345
Tagliapietra, Simone, and Reinhilde Veugelers, A Green Industrial Policy for Europe. (Brussel, Belgium: Bruegel, 2021). Available online at https://www.wita.org/wp-content/uploads/2021/01/Bruegel_Blueprint_31_Complete_151220.pdf.
Timmermann, Cristian, “Food Security as a Global Public Good,” Routledge Handbook of Food as a Commons, no. December 2018 (2018): 85–99. https://doi.org/10.4324/9781315161495-6
Widiatedja, I Gusti Ngurah Parikesit. “Indonesia’s Export Ban on Nickel Ores: Does It Violate the World Trade Organization (WTO) Rules?”, Journal of World Trade 55, no. 4 (2021): 667-696.
Wolfrum, Rüdiger, Peter-Tobias Stoll, and P. Holger. "Article XX General Exceptions [Chapeau]", In WTO - Trade in Goods, (Leiden: BRILL, 2011), pp. 464–478. https://doi.org/10.1163/ej.9789004145665.i-1228.168
Wolf, Sarah, et al. "The European Green Deal—more than climate neutrality." Intereconomics 56 (2021): 99-107.
World Bank Group, The Growing Role of Minerals and Metals for a Low Carbon Future (Washington D.C: World Bank, 2017). https://doi.org/10.1596/28312
Zohuri, Bahman and Patrick McDaniel, “The Electricity: An Essential Necessity in Our Life,” Advanced Smaller Modular Reactors, no. August (2019). https://doi.org/10.1007/978-3-030-23682-3