International trade law and domestic policy in Indonesia as a developing country - lesson learned from the Indonesian mining policy

Abstract

The establishment of the World Trade Organization in 1994 has accelerated the growth of international trade activities, which is worth up to US$1 trillion per year according to the WTO Annual Report 2014. Indonesia, as one of the developing countries, also considers international trade as their important pillar to support economic growth. However, the challenge is to balance national interest and Indonesian commitment to international trade law under the WTO framework into Indonesian legal policy. This challenge was shown in the newest Indonesian Mining Policy in 2009, which obligated every mining company to strive added value for their mineral ore. Consequently, mining industries in Indonesia will no longer be able to export their mineral ore. From the Indonesian Government's perspective, the objective of this policy is to maximise added value from mining industries which might be considered by other states as a restriction type of export policies.