UPH CITI Hosted A Seminar “Indonesia Raw Mineral Export Ban”

Feitty Pandjaitan, CITI Senior Fellow Researcher giving talk regarding the Indonesian Minerals Export Ban

On September 16^th, 2015, the Center for International Trade and Investment (CITI) hosted its first in a series of lunchtime seminars; spaces designed as a part of CITI?s outreach programs to discuss current Indonesian law and policy issues related to international trade. The seminar focused on the raw mineral export ban currently in place in Indonesia and the challenge it poses to remaining WTO compliant. The seminar included participants from a range of backgrounds, including representatives from ASEAN, the French and Swiss embassies, the EU ? Indonesia Trade Cooperation Facility and numerous local law firms and universities.

The export ban has been a focus of CITI?s recent research, led by Senior Researcher Feitty Eucharisti who shared an overview of her research with the seminar participants and facilitated a dialogue afterwards. Through a participatory setting, the seminar provided a forum to discuss concepts contemplated in a forthcoming paper written by Feitty. In ?The Indonesian Raw Mineral Export Ban: Is the Country Shooting Itself in the Foot??,Feitty  considers the history of mining law in Indonesia as context for the current laws and explores WTO law issues related to quantitative restrictions, potential exemptions for the Indonesian laws under GATT, as well as possible alternatives to the raw mineral export ban that maintain the purpose of the ban while ensuring WTO consistency. Her analysis suggests that the country may indeed be ?shooting itself in the foot,? as the raw mineral export ban will be difficult to defend at the WTO and there is little evidence that such a ban contributes to economic growth.

Representatives from the Switzerland and French embassies among the participants

In explaining her rationale, Feitty primarily explored two relevant articles of GATT: Article XI on the general elimination of quantitative restrictions and Article XX on the general exceptions. She explained that cases such as Japan ? Semi Conductors and China ? Raw Minerals, while not factually identical, point to a broad range of export restriction policies that make Indonesia?s successful defense of the ban doubtful. Similarly, the general exceptions in Article XX of GATT would be difficult to establish considering the challenge of proving ?necessity? for the wide sweeping application of the raw mineral export ban laws. These comments raised interesting and engaging questions from the seminar participants.

Participants mingling after the seminar

One participant raised the question of whether aspects of the value added requirement of the raw mineral export ban could also be challenged under the TBT and noted that the wording of Article XI:1 of GATT was arguably broad. Another participant challenged the argument that controlled raw mineral exports could increase the international competitiveness of Indonesia, adding that buyers will simply turn to other markets that provide more market certainty. This was followed by a consideration of the uniqueness of Indonesia for certain rare raw minerals and a more nuanced approach to regulating raw mineral export was pondered. Other participants were curious about the response of the private sector to the export ban and raised questions concerning the long-term vitality of the ban under, quiet but mounting, pressure from the sector. CITI looks forward to hosting successful future seminars in its efforts to maintain its reputation for quality research and meaningful collaboration.(citi)

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