Japan to Sue Indonesia over Mineral Export Ban

 
Kartini Laras Makmur, Andin Aditya Rahman
 
The implementation of the mineral export ban policy by the Government has not only affected domestic mining companies operating in Indonesia, but also other countries that relied heavily on Indonesia’s mineral products. This is particularly true for Japan and Malaysia where the effects of the export ban policy are being the most strongly felt.
                                                                                                                    
“Unknowingly, our coal exports were important for their economy. To fulfill their energy needs, Malaysia relies on 60 percent of its coal coming from Indonesia,” said Ahmad Erani Yustika, Executive Director of the Institute for Development of Economics and Finance (INDEF) last Thursday.
 
When the mineral export ban was first discussed, Malaysia responded by making a roadmap for a new energy policy in anticipation of the implementation of the mineral export ban. This includes consideration for optimizing nuclear power as the main energy source instead of coal.
 
“The downstream policy through increasing added-value has indirectly clogged efforts to mobilize industries,” Mr. Yustika added.
 
Japan, on the other hand, has indicated it will file an objection with the World Trade Organization (WTO) regarding the mineral export ban policy. This is mainly because Japan is struggling to find other sources of nickel to supply its stainless steel producers.
 
In response to the problems caused by raw mineral for Malaysia and Japan, R. Sukhyar, Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, asserted that proper notifications were made in 2005 to Japan and Malaysia.
 
“Such notifications were even conducted in Japan, so that their industrial sector could implement anticipative measures. In 2005, we notified Japan. They already know about this. We said that we also want to be advanced like Japan,” Mr. Sukhyar explained.
 
In response to Japan’s intentions to report Indonesia to the WTO, Mr. Sukhyar boasted that the Government is ready for anything thrown at it by Japan.
 
“Japan will bring this export ban issue to the WTO. We are ready for that. If taken to arbitration, we must be ready,” Mr. Sukhyar concluded.
 
(For more information on the mineral export ban, see: ILD No. 343, and ILB No. 2320, No. 2321, No. 2325and No. 2326)
 
(hot/kc)