Legal Analysis on Local Content Requirements Regulation for Modern Retail Business in Indonesia

DOI

10.2991/assehr.k.210531.095How to use a DOI?

Keywords

Indonesia, Domestic Goods, Local Content Requirements, TRIMs Agreement, GATT, World Trade Organization

Abstract

This research paper examined the adjustment of domestic Local Content Requirements rules in Indonesia for the implementation of Modern Retail business in Indonesia and the Local Content Requirements provisions of the WTO. Indonesia showed their self-approval to WTO by ratifying Law Number 7 of 1994 concerning the Ratification of the Agreement Establishing The World Trade Organization on November 2, 1994 (Dirdjosisworo, 2004). However, since 2014, the Government of Indonesia has received protests from WTO member countries such as The European Union, Japan, the United States, Australia and New Zealand in relation to the Local Content Requirement policy in the form of fulfilling 80% (eighty percent) of domestic products that must be sold on the modern retail market on Ministry of Trade Regulation 53/2012, 68/2012, and 70/2013 which was replaced by Regulation 56/2014. These provisions are contrary to the TRIMs Agreement, principled by Article III GATT on National Treatment and Article XI GATT on General Elimination of Quantitative Restrictions, which is an annex to the WTO Establishment Agreement that has been ratified by Indonesia. Comparison between the regulations of Indonesia’s local content requirements and WTO provisions will be done by looking at the adjustments between regulations and the application of WTO exceptions. Based on rules of Local Content Requirements, the Modern Retail has violated TRIMs Agreement with no applicable exceptions on the provisions.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Muhammad Iqbal Pratama
AU  - Rouli Anita Velentina
PY  - 2021
DA  - 2021/06/29
TI  - Legal Analysis on Local Content Requirements Regulation for Modern Retail Business in Indonesia
BT  - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
PB  - Atlantis Press
SP  - 753
EP  - 760
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210531.095
DO  - 10.2991/assehr.k.210531.095
ID  - Pratama2021
ER  -