Permanent Sovereignty vs. International Obligations
A Lesson Learned from the DS 592
Abstract
This research analyses Indonesia's policies related to downstreaming and restrictions on raw nickel exports that have caused international debate, especially the European Union which complained against Indonesia to the World Trade Organization (WTO) in Dispute Settlement 592 (DS-592). The study explores Indonesia's position as a WTO member that is being questioned for its policy of banning nickel ore exports to the European Union, and examines the DS-592 ruling in relation to the permanent sovereignty debate. This article uses a normative juridical method with doctrinal, comparative, and case approaches. The results show that Indonesia has permanent sovereignty over its nickel ore guaranteed by UN Resolution 1803. Therefore, Indonesia must exercise this sovereignty with due regard to international obligations. Indonesia should learn from China's export regulations as it prioritises export restriction policies rather than export bans. By applying China's approach, Indonesia can prevent the problems that occurred in DS 592. However, a series of nickel downstream policies implemented by Indonesia have violated the provisions of the WTO Agreement. This article also explains that the vacuum of the Appellate Body does not negate the EU's authority to retaliate against Indonesia. This article concludes that Indonesia must implement a policy determining the percentage of downstream nickel ore, as well as nickel ore that will be exported. This conclusion has resulted in the theoretical idea that no sovereignty can be exercised in violation of the country's international obligations. Thus, each country must be able to establish policies that can balance national interests with international obligations.
KEYWORDS: Export Restrictions, International Obligations, Nickel Ore, Soverignty, WTO.
References
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Cahyaningtyas, Raras Nadifah, “The Effect of RBA OSS-Based Company Licensing on Domestic Investment” (2022) 5:3 Budapest International Research and Critics Institute-Journal (BIRCI-Journal) 23231–23242.
Cantyani, Kasistha et al, “The Prisoner’s Dilemma: Indonesia and the European Union in Export Commodity Disputes” (2023) 4:1 Jurnal Sentris 86–100.
Chekera, Yolanda T & Vincent O Nmehielle, “The International Law Principle of Permanent Sovereignty over Natural Resources as an Instrument for Development: The Case of Zimbabwean Diamonds” (2013) 6 African Journal of Legal Studies 69–101.
Dewi, Yetty & Mikaila Jessy Azzahra, “Re-examining Indonesia’s Nickel Export Ban: Does it Violate the Prohibition to Quantitative Restriction?” (2022) 6:2 Padjadjaran Journal of International Law 180–200.
Dharmayanti, Ida Ayu Kade Febriyana & Putu Gede Arya Sumerta Yasa, “Penerapan Sistem Perizinan Berusaha Online Single Submission Risk-based Approach (OSS-RBA) Di Bidang Industri Pasca UU Cipta Kerja” (2022) 8:1 Jurnal Komunikasi Hukum (JKH) 509–526.
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Elvardi, Jean, Firman Hasan & Arya Putra Rizal Pratama, “The use of Language In International Agreements According to The 1969 Vienna Convention And Its Implementation In Indonesian National Law” (2022) 37:3 Yuridika 515–538.
Geraldi, Aldo Rico & Luh Putu Purnama Ning Widhi, “Personalitas Hukum World Trade Organization Bagi Negara Berkembang Terkait Sistem Perdagangan Antar Negara” (2018) 4:1 Jurnal Komunikasi Hukum (JKH) 1–17.
Gielen, Dolf et al, “The role of renewable energy in the global energy transformation” (2019) 24 Energy Strategy Reviews 38–50.
Godfrey O Agbaragam & A Anele Augustine, “World Trade Organization (WTO) And Fair Trade Practices Among Member States: Issues and Challenges” (2021) 9:2 European Journal of Research in Social Sciences 45–55.
Handayani, Febri & Lysa Angrayni, “Hak Menguasai Negara Dalam Pengaturan Sumber Energi Baru dan Terbarukan” (2023) 5:1 Eksekusi 42–61.
Hariyadi, Achmad & Rusdianto Sesung, “Keabsahan Kepemilikan Tanah yang Diperoleh Berdasarkan Perjanjian Nominee Antar Sesama Warga Negara Indonesia” (2021) 9:1 Jurnal Selat 44–57.
Hrynkiv, Olga, “Export Controls and Securitization of Economic Policy: Comparative Analysis of the Practice of the United States, the European Union, China, and Russia” (2022) 56:4 Journal of World Trade 14–15.
Husna TR, Cut Asmaul, “Adopsi Prinsip Permanent Sovereignty Over Natural Resources (PSNR) Migas” (2016) 46:4 Jurnal Hukum & Pembangunan 454–488.
Juned, Mansur, “Economic Diplomacy through the Development of Nickel Smelters and Battery Plants in Indonesia: Obi Island Case Study” (2023) 12:1 Andalas Journal of International Studies (AJIS) 69–79.
Kase, Dhesy A, “Wilayah Perbatasan Negara dalam Perspektif Hukum Internasional” (2020) 2:1 Jurnal Proyuris 168–184.
Köstner, Dominic & Marcus Nonn, “The 2020 Chinese export control law: a new compliance nightmare on the foreign trade law horizon?” (2023) 8:3 China-EU Law Journal 81–95.
Krustiyati, Atik & Gita Gea, “The Paradox of Downstream Mining Industry Development in Indonesia: Analysis and Challenges” (2023) 7:2 Sriwijaya Law Review 335–349.
Kusmiati, Susi, Anita Afriana & Pupung Faisa, “Implications and Legal Consequences of Implementing A Risk Based Online Single Submission System For Limited Liability Company Business Licensing” (2023) 5:1 Jurnal Poros Hukum Padjadjaran 1–19.
Luong, John H T, Cang Tran & Di Ton-That, “A Paradox over Electric Vehicles, Mining of Lithium for Car Batteries” (2022) 15:21 Energies 1–25.
Mastuti, Sri & Pangi Syarwi, “Kebijakan Pelarangan Ekspor Bijih Nikel Indonesia Dari Sudut Teori Keadilan John Rawls” (2023) 4:2 Communitarian : Jurnal Prodi Ilmu Politik 691–709.
Mufti, Ahmad & Muhaimin Limatahu, “Optimization of Maluku’s Directorate General of Customs and Excise Supervision Function in the Archipelagic Regions for Excited Goods Circulation” (2022) 6:1 Cepalo 1–12.
Muhajir, Mumu et al, “Harmonisasi Regulasi dan Perbaikan Tata Kelola Sumber Daya Alam di Indonesia” (2019) 5:2–2 Integritas : Jurnal Antikorupsi 1–13.
Nasution, Hafizha Rika, “Pengesahan Badan Hukum Perseroan Terbatas Dalam Peraturan Pemerintah Tentang Perizinan Berusaha Berbasis Risiko (Online Single Submission Risk Based Approach) Ditinjau Dari Sifat Badan Hukum (Rechtpersoonlijkheid)” (2022) 8:1 Jurnal Hukum dan Bisnis (Selisik) 119–148.
Ng’ambi, Sangwani, “Permanent Sovereignty Over Natural Resources and the Sanctity of Contracts, From the Angle of Lucrum Cessans” (2015) 12:2 Loyola University Chicago International Law Review 153–172.
Nugroho, Wahyu, “Persoalan Hukum Penyelesaian Hak atas Tanah dan Lingkungan Berdasarkan Perubahan Undang-Undang Minerba” (2020) 27:3 Iustum 568–591.
Nurhayati, Nunik et al, “Kedaulatan Negara Indonesia: Makna dan Implementasi Sebelum dan Sesudah Amandemen UUD 1945” (2022) 4:1 Amnesti Jurnal Hukum 44–61.
Panjaitan, Edward ML & Putu George Matthew Simbolon, “Penyelesaian Sengketa pada World Trade Organization dan Solusi terhadap Kekalahan Indonesia pada DS 592 dalam Perspektif Kepentingan Indonesia” (2023) 9:2 Jurnal Hukum to-ra : Hukum Untuk Mengatur dan Melindungi Masyarakat 192–202.
Pereira, Ricardo & Orla Gough, “Permanent sovereignty over natural resources in the 21st century: natural resource governance and the right to self-determination of indigenous peoples under international law” (2013) 14:2 Melbourne Journal of International Law 451–495.
Pratiwi, Endang, Theo Negoro & Hassanain Haykal, “Teori Utilitarianisme Jeremy Bentham: Tujuan Hukum Atau Metode Pengujian Produk Hukum?” (2022) 19:2 Jurnal Konstitusi 268–293.
Qurbani, Indah Dwi et al, “The Ideal Concept of Energy Control in Indonesia From the Economic Constitution Perspective” (2022) 9:3 Jurnal Pembaharuan Hukum 481–502.
Rachman, AA Muhammad Insany & Evi Dwi Hastri, “Implikasi Prinsip Right Of External Self Determination Terhadap Kedaulatan Negara Induk Sebagai Subjek Hukum Internasional” (2021) 8:2 Jurnal Jendela Hukum 47–63.
Rahadian, Rizky Ikhsan & Muhammad Ramdhan Ibadi, “Impact of Accelerating the Export of Nickel Prohibition on Non-Tax Revenue and National Economy” (2021) 3:1 Jurnal Anggaran dan Keuangan Negara Indonesia (AKURASI) 91–115.
Rapson, David S & Erich Muehlegger, “The Economics of Electric Vehicles” (2023) 17:2 Review of Environmental Economics and Policy 1–29.
Ridwansyah, Rizki, “Konsep Teori Utilitarianisme dan Penerapannya dalam Hukum Praktis di Indonesia” (2023) 1:2 Nusantara: Jurnal Pendidikan, Seni, Sains dan Sosial Humaniora 1–11.
Rif’an, Moh et al, “Re-Eksistensi Peran Desa dalam Rantai Pasok Produksi Pengolahan Hutan Desa Melalui Bank Pohon: (Strategi Penegakan Hak Asasi Manusia Sektor Kehutanan)” (2020) 1:6 Jurnal Hukum Lex Generalis 39–65.
Safitri, Maida, Khairur Rizki & Zulkarnain Zulkarnain, “Kebijakan Keamanan Energi Indoneia dalam Pemenuhan Energi Listrik melalui Kerjasama ASEAN Power Grid” (2021) 3:2 Indonesian Journal of Global Discourse 15–30.
Sánchez de Tagle, Gonzalo, “The objective international responsibility of states in the Inter-American human rights system” (2015) 7:2 Mexican Law Review 115–133.
Santoso, Rizal Budi et al, “Pilihan Rasional Indonesia dalam Kebijakan Larangan Ekspor Bijih Nikel” (2023) 8:1 Indonesian Perspective 154–179.
Septiansyah, Zainal B & Muhammad Ghalib, “Konsepsi Utilitarianisme dalam Filsafat Hukum dan Implementasinya di Indonesia” (2018) 34:1 Ijtihad: Jurnal Hukum Islam dan Pranata Sosial 27–34.
Silalahi, Firman & Kenny Jesica, “Nickel Smelter Moratorium: Efforts to Establish Laws to Ensure Legal Certainty of Investment” (2024) 2:2 Acta Law Journal 65–74.
Simbolon, Putu George Matthew & Angel Damayanti, “Indonesian Trade Policy in Adjusting the 2020 WTO’s Trade Policy Review” (2023) 12:1 Jurnal Hubungan Internasional 76–87.
Simbolon, Putu George Matthew & Erik Mangajaya Simatupang, “Is Indonesia Ready to be the Party of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership?” (2024) 4:1 Jurnal Kajian Pembaruan Hukum 1–44.
Siraji, Hafizh, “The Sovereignty of the Air Space and Its Protection in the Perspective of International Law: Contemporary Developments” (2022) 1:2 International Law Discourse in Southeast Asia 159–184.
Syafira, Anisa Dewi et al, “Analisis Peluang, Tantangan, Dan Dampak Larangan Ekspor Nikel Terhadap Perdagangan Internasional Di Tengah Gugatan Uni Eropa Di WTO” (2023) 2:1 Jurnal Economina 90–100.
Syarifuddin, Nurhayati, “Pengaruh Industri Pertambangan Nikel Terhadap Kondisi Lingkungan Maritim di Kabupaten Morowali” (2022) 1:2 Jurnal Riset & Teknologi Terapan Kemaritiman 19–23.
Visser, Fritz, “The principle of permanent sovereignty over natural resources and the nationalisation of foreign interests” (1988) 21:1 The Comparative and International Law Journal of Southern Africa 76–91.
Wu, Mark, “China’s Export Restrictions and the Limits of WTO Law” (2017) 16:4 World Trade Review 673–691.
Yundrina, Liatosa, “Implementasi Kebijakan Online Single Submission Risk Based Approach (Oss Rba) di Kecamatan Kalidoni Kota Palembang” (2023) 5:3 Journal on Education 9855–9868.
Yuniarti, Siti & Erni Herawati, “Analisis Hukum Kedaulatan Digital Indonesia” (2020) 15:2 Pandecta Research Law Journal 154–166.
Published
2024-08-31
How to Cite
SIMBOLON, Putu George Matthew; YUSRO, Mochammad Abizar; TANIADY, Vicko.
Permanent Sovereignty vs. International Obligations.
Lentera Hukum, [S.l.], v. 11, n. 2, p. 189-230, aug. 2024.
ISSN 2621-3710.
Available at: <https://jurnal.unej.ac.id/index.php/ejlh/article/view/43342>. Date accessed: 19 dec. 2024.
doi: https://doi.org/10.19184/ejlh.v11i2.43342.
Section
Articles
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