WT/DS592/3  
 
15 January 2021  
(21-0519) Page: 1/3 
  Original: English  
 
 
INDONESIA – MEASURES RELATING TO RAW MATERIALS  
REQUEST FOR THE ESTABLISHMENT OF A PANEL  BY THE EUROPEAN UNION  
The following communication, dated  14 January 2021 , from the delegation of the European Union  to 
the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.  
 
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On 22 November 2019, the European Union requested consultations with Indonesia pursuant to 
Articles 1 and 4 of the Understanding on Rul es and Procedures Governing the Settlement of Disputes 
(DSU), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and 
Article  4.1 of the Agreement on Subsidies and Countervailing Measures (ASCM) with regard to 
various measures concerning certain raw materials necessary for the production of stainless steel, 
as well as a cross -sectoral import duty exemption scheme conditional upon the use of domestic over 
imported goods.1 
The consultations took place on 30 January 2020 in Geneva with a view to reaching a satisfactory 
settlement of the matter. Unfortunately, they failed to settle the dispute. The European Union 
therefore requests that a panel be established pursuant to Articles 4.7 and 6 of the DSU and 
Article  XXIII of th e GATT 1994, to examine the matter based on the standard terms of reference, as 
set out in Article 7.1 of the DSU.  
The measures at issue in this request are the export prohibition of nickel ore and the domestic 
processing requirements on minerals, in parti cular nickel ore and iron ore.  
The export prohibition of nickel ore  
Indonesia has restricted exports of nickel ore to different extents and under different rules since at 
least 2014. In January 2014 nickel was excluded from the regime on the necessary processing and 
purification of mining commodities for export, which effectively outlawed exports of nickel ore. From 
January 2017 to December 2019 exports of nickel ore with a concentration below 1.7% were 
permitted subject to certain conditions,  while those of nickel ore with a higher concentration 
remained prohibited. Since January 2020 all exports of nickel ore, regardless of its concentration, 
are banned.  
The legal instruments through which this measure is implemented include i.a., considered alone or 
in any combination:  
• Law Number 4/2009 on Coal and Mining.  
• Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia 
Number 7/2012 concerning increasing added value of minerals through processing and 
refining of miner als activities of 6 February 2012.  
 
1 WT/DS592/1, G/L/1345, G/SCM/D127/1.  WT/DS592/3  
 
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  • Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia 
Number 11/2012 amending Regulation of the Minister of Energy and Mineral Resources 
Number 7/2012 of 16 May 2012.  
• Regulation of the Mi nister of Energy and Mineral Resources of the Republic of Indonesia 
Number 20/2013 amending Regulation of the Minister of Energy and Mineral Resources 
Number 7/2012 of 1 August 2013.  
• Regulation of the Minister of Energy and Mineral Resources of the Republi c of Indonesia 
Number 1/2014 concerning increasing added value of minerals through domestic processing 
and refining of minerals activities of 11 January 2014.  
• Regulation of the Minister of Trade of the Republic of Indonesia Number 1/2017 concerning 
export provisions for processed and purified mining products of 9 January 2017.  
• Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia 
Number 25/2018 concerning mineral and coal mining business of 3 May 2018.  
• Regulation of the Min ister of Energy and Mineral Resources of the Republic of Indonesia 
Number 11/2019 amending Regulation of the Minister of Energy and Mineral Resources 
Number 25/2018 of 28 August 2019.  
• Regulation of the Minister of Trade of the Republic of Indonesia Number 96/2019 on export 
provisions for processed and purified mining products of 30 December 2019.   
This request also covers any annexes thereto, notices, preliminary findings, reviews, amendments, 
supplements, replacements, renewals, extensions, implementing m easures or any other related 
measures.  
The export prohibition of nickel ore bans all exports of nickel ore from Indonesia. It is therefore 
inconsistent with Article XI:1 of the GATT 1994 which provides that no prohibitions or restrictions 
shall be institut ed or maintained on the exportation or sale for export of any product destined for 
the territory of any other contracting party.  
The domestic processing requirements  
Indonesia applies domestic processing requirements with regard to certain raw materials, notably 
nickel ore and iron ore, prior to them being exported. Domestic processing requirements oblige 
mining companies to enhance the value of the relevant raw materials through the conduct of certain 
processing and/or purification operations in Indonesia  before exporting them.  
The legal instruments through which this measure is implemented include i.a., considered alone or 
in any combination:  
• Law Number 4/2009 on Coal and Mining.  
• Regulation of the Minister of Energy and Mineral Resources of the Republic o f Indonesia 
Number 25/2018 concerning mineral and coal mining commercialisation of 3 May 2018.  
• Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia 
Number 50/2018 amending Regulation of the Minister of Energy and Mineral Resources 
Number 25/2018 of 5 December 2018.  
• Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia 
Number 11/2019 amending Regulation of the Minister of Energy and Mineral Resources 
Number 25/2018 of 28 August 2019.  WT/DS592/3  
 
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  This r equest also covers any annexes thereto, notices, preliminary findings, reviews, amendments, 
supplements, replacements, renewals, extensions, implementing measures or any other related 
measures.  
The domestic processing requirements have the consequence of p reventing exports of the raw 
materials concerned unless they have been duly processed and/or purified. For that reason, it is 
inconsistent with Article XI:1 of the GATT 1994 which provides that no prohibitions or restrictions 
shall be instituted or maintai ned on the exportation or sale for export of any product destined for 
the territory of any other contracting party.  
As a result of the inconsistencies described above, Indonesia’s measures nullify or impair the benefits 
accruing to the European Union, dir ectly or indirectly, under the covered agreements.  
The European Union asks that this request for the establishment of a panel be placed on the agenda 
for the meeting of the Dispute Settlement Body to be held on 25 January 2021.  
 
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