JAKARTA [Indonesia]: Indonesia recently filed a complaint with the World Trade Organization (WTO) against the European Union (EU) for their anti-dumping tariffs on Indonesian Stainless Steel. The EU imposed an anti-subsidy duty of 21% on imports of Stainless-Steel cold-rolled flat products from Indonesia in 2021, and these additional tariffs have caused exports of Indonesia's Stainless Steel to plummet dramatically. According to an Indonesian trade ministry official, the EU's policies are in violation of WTO rules.

Indonesia's exports to the European Union were around half a billion dollars annually before the introduction of tariffs, according to a senior official from the Trade Ministry, Djatmiko Bris Witjaksono.

However, following the tariffs, Indonesian shipments to the EU dropped drastically - down to $229 million in 2021 and further still to only $40 million between January and November of last year. The introduction of these duties has significantly marred the competitiveness of Indonesian products on the international market.

The European Union (EU) Commission recently announced the imposition of tariffs on imports from China and Indonesia due to unfair state-sponsored subsidies. In 2020, Jakarta imposed a ban on exports of unprocessed Nickel ore as part of a move to attract investment into developing an in-country downstream industry. This action was contested by the EU at the World Trade Organization (WTO), with Jakarta appealing the ruling when it went in favor of the EU.

Aside from this dispute, Indonesia and the EU are currently in negotiations for a comprehensive economic partnership agreement, despite lingering disagreement over how the EU deals with Indonesian Palm oil.