In response to the continuous demands to lift the ban on raw nickel export, and the EU's lawsuit against Indonesia at the World Trade Organization (WTO), Indonesia's Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan, fired back at the European Union.

The EU contend that the ban hampers the supply chain, disrupts trade flows, and negatively impacts EU industries that rely on Indonesian nickel imports. In response, the EU has lodged a complaint with the WTO, seeking resolution and urging Indonesia to lift the export restrictions.

Luhut raised questions about the European Union's assistance to Indonesia in dealing with the Covid-19 pandemic.

In addition, Luhut explained that Indonesia is the largest archipelagic country and should not be dictated by anyone.

"So, it's like the European Union came to me and said, 'Why is Indonesia banning nickel ore exports?' If we hadn't banned exports, our economy wouldn't be like this. Am I wrong? Do I have to think about you? Think for yourselves. When we had Covid, who helped us? Where was the European Union's assistance?" Luhut said during an interview with CNBC Indonesia on Monday (10/7/2023).

Furthermore, Luhut expressed his astonishment at the EU's decision to resort back to using coal to address the energy supply shortage from Russia.

This is surprising considering their continuous campaign against climate change. "They talk about climate change, and yet they ask for coal exports," he added.

Every country for itself

Regarding downstreaming, Luhut stated that there is no developed country in the world that are willing to help another country to become a developed country.

"Do you have to do it by yourself, or will you continue to be their slaves? If we keep fighting, we'll end up as their slaves. We must be united in acknowledging our shortcomings. Yes, every President has their flaws. If you want perfection, go to heaven. No one can make you progress except yourself," Luhut emphasized.

Explaining the ban and EU's lawsuit at the WTO

Indonesia, as the world's largest archipelagic country, possesses significant nickel reserves and plays a crucial role in the global nickel market.

Recognizing the economic and strategic importance of this resource, the Indonesian government implemented a ban on the export of raw nickel in a bid to boost domestic processing and promote value-added industries within the country.

Meanwhile, the European Union, a major consumer of nickel for its stainless steel and battery industries, has voiced concerns over Indonesia's ban.

This contentious issue has escalated to the point where the EU has filed a complaint against Indonesia with the World Trade Organization (WTO). The ban, which was implemented by the Indonesian government, has sparked a heated debate between the two parties, with each presenting its arguments and concerns.

The European Union (EU) and Indonesia find themselves at odds over Indonesia's ban on the export of raw nickel. This contentious issue has escalated to the point where the EU has filed a complaint against Indonesia with the World Trade Organization (WTO).

The dispute between the EU and Indonesia holds significant implications for both parties. If the WTO ruling favors the EU, Indonesia may face consequences such as trade sanctions or compensation claims.

On the other hand, if Indonesia's ban is upheld, it may embolden other resource-rich countries to follow a similar path of resource nationalism, potentially impacting global trade dynamics.

Additionally, the outcome of this dispute will influence the future of Indonesia's industrialization plans and the EU's sourcing strategies for nickel.