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Jakarta Post

Indonesia, EU embroiled in fresh trade spat over nickel export ban, subsidies

  • Norman Harsono and Dian Septiari

    The Jakarta Post

PREMIUM
Jakarta   /   Thu, November 28, 2019   /  07:07 am
The Jakarta Post Image
Nickel ore processing carried out at a factory owned by PT Vale Indonesia.(JP/Ruslan Sangadji)

As the quarrel over Indonesia’s palm oil business rumbles on, trade tensions between Indonesia and the European Union (EU) have flared again following the bloc’s complaint to the World Trade Organization (WTO) over Indonesia’s nickel export ban and alleged illegal subsidies. The European Commission sent on Nov. 22 a letter to the WTO challenging Indonesia’s nickel ore export ban, which comes into effect in January next year, saying Indonesia’s ban “goes against WTO rules”. The commission also openly stated that it wanted to protect European interests, particularly those of European steel producers, who risked losing a major supplier of raw nickel, which is a key ingredient in the production of stainless steel. Indonesian Ambassador to the United Nations and the WTO in Geneva, Hasan Kleib, confirmed on Wednesday that the EU ambassador in Gen...