Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan, has issued a warning of potentially redirecting dairy imports from the European Union (EU) to other countries like Australia.
It is known that the EU has initiated consultations regarding the Enforcement Regulation after Indonesia filed an appeal at the World Trade Organization (WTO).
During these consultations, which will continue until September 1, 2023, EU stakeholders will discuss the possibility of implementing customs duties or restrictions on the quantity of imports/exports from Indonesia.
According to Luhut, Indonesia will follow the legal process.
“Developing countries have the right to enjoy the added value from their natural resources. There are indeed other ways to achieve that. I think we can do that,” Luhut said after attending the Investor Daily Round Table with the theme ‘Economic Transformation Amid Global Challenges’ at Hutan Kota Plataran, Jakarta, on Monday (July 31, 2023).
“If they [EU] retaliate, we can shift dairy imports to Australia, including milk, cheese, wine, and more. Why should it only be from Europe? We also have the right to survival. We shouldn’t be dictated anymore. It’s no longer the time for that,” added Luhut.
Opposition on nickel export ban unfair, Luhut argued
In his presentation, Luhut also emphasized that it is unfair for the EU to oppose the ban on nickel exports from Indonesia. He mentioned that he recently met with representatives from the European Parliament.
“Why do you retaliate against us when we banned only 1% of our nickel ore exports to the EU? You are enjoying it, and that’s unfair. We have to fight against you. It’s a matter of survival for us,” Luhut stated.
Indonesia had implemented a ban on nickel ore exports in 2020. The EU subsequently filed a complaint against Indonesia at the WTO, as the export ban was feared to disrupt European stainless steel production. Indonesia lost the lawsuit against the EU at the WTO.
However, the Indonesian government remains persistent and filed an appeal on December 8, 2022.
