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Indonesia braces for possible WTO case over bauxite export ban
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A truck passes through a bauxite mining site belonging to Harita Group in Kendawangan, West Kalimantan, on Feb. 13, 2017. (AFP/Adek Berry)
T
he government says it is ready to fight back should any countries pursue legal action against its bauxite export ban enforced earlier this month.
In a speech on Sunday, President Joko “Jokowi” Widodo acknowledged that China, which is Indonesia’s biggest bauxite importer, may file a complaint against Jakarta at the World Trade Organization (WTO).
“If anyone sues us, we’ll face it. Please, let’s not act like a small country. Indonesia is a big country. A big country shouldn’t be gutless when getting sued, don’t be ridiculous,” Jokowi was quoted as saying by CNBC Indonesia.
Speaking to the same media outlet months ago, Trade Ministry official Bara Krishna Hasibuan said there was no sign of China taking Indonesia to the WTO, but the ministry was ready for the consequences that may arise from the bauxite export ban.
“I have talked with our ambassador to the WTO, and there has not been [any talk of bringing this before the WTO],” said Bara on March 2, adding: “Bilaterally, there hasn’t been any indication pointing toward our government that China will take steps.”
He said that, in principle, the ban was not expected to disrupt broader economic relations with other countries, especially with those that relied heavily on mineral products from the archipelago.
Around 4 percent of global bauxite reserves are estimated to lie under Indonesian soil, with data from the Energy and Mineral Resources Ministry revealing that the country holds some 1.2 billion tonnes of the aluminum ore.
