INDONESIA – MEASURES RELATING TO RAW MATERIALS REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE EUROPEAN UNION
Document: REQUEST FOR THE ESTABLISHMENT OF A PANEL
Date: 15 January 2021
Document codes: WT/DS592/3
Complainant: EU
Respondent: Indonesia
Third parties: Brazil, Canada, China, Japan, South Korea, India, Russia, Saudi Arabia, Singapore, Taiwan, Turkey, Ukraine, UAE, United Kingdom, U.S.
Dispute stage: Panel
Agreements cited: GATT 1994  GATT 1994

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.

On 22 November 2019, the European Union requested consultations with Indonesia pursuant to
Articles 1 and 4 of the Understanding on Rules 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 the 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 particular 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 minerals activities of 6 February 2012.

1 WT/DS592/1, G/L/1345, G/SCM/D127/1.

• 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 instituted 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.

This request 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, directly 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.