Indonesia has secured a major victory at the World Trade Organization (WTO) in its trade dispute with the European Union over stainless steel exports. The ruling affirms Indonesia’s right to fair market access and challenges the EU’s imposition of countervailing and anti-dumping duties. This decision not only strengthens Indonesia’s trade position but also sets a precedent for future disputes in global commodity markets.
Key Facts & Background
- The WTO Panel issued its final report on October 2, 2025, regarding case DS616: European Union, Countervailing and Anti-Dumping Duties on Stainless Steel Cold-Rolled Flat Products from Indonesia.
- Indonesia filed the complaint in February 2023, challenging the EU’s duties imposed since November 17, 2021.
- The EU had applied anti-dumping tariffs of 10.2–20.2%, later revised to 9.3–20.2%, plus countervailing duties (CVD) of 0–21.4% under Regulation 2022/433.
- The WTO Panel found that most of the EU’s measures were inconsistent with the WTO’s Agreement on Subsidies and Countervailing Measures (SCM Agreement).
- Indonesia’s nickel export policies were deemed not to distort stainless steel input prices below fair market value.
- Exemptions on import duties in bonded zones were not considered illegal subsidies.
- Alleged transnational subsidies from Chinese entities to Indonesian producers were also ruled not to violate international trade law.
- The WTO recommended that the EU revise its trade measures and remove the countervailing duties on Indonesian stainless steel.
- Minister of Trade Budi Santoso hailed the ruling as a milestone for Indonesia’s export advocacy and urged the EU to comply promptly.
- The government views this decision as a gateway to strengthening bilateral economic cooperation and expanding market access.
Strategic Insights
The WTO’s ruling in favor of Indonesia marks a significant moment in the country’s trade diplomacy and industrial policy. It reinforces Indonesia’s credibility as a rules-based trading partner and affirms its right to defend strategic exports against protectionist measures. Stainless steel, a key industrial commodity, plays a vital role in Indonesia’s manufacturing and export portfolio. Ensuring fair access to European markets not only benefits producers but also signals Indonesia’s growing assertiveness in global trade governance.
This case also highlights the importance of legal and institutional capacity in navigating complex trade disputes. Indonesia’s ability to mount a successful challenge at the WTO demonstrates its evolving sophistication in trade law and dispute resolution. It sends a message to other emerging economies that multilateral institutions remain viable platforms for defending national interests, especially in sectors vulnerable to arbitrary trade barriers.
The implications extend beyond stainless steel. By defending its nickel export policies and bonded zone incentives, Indonesia has safeguarded broader elements of its industrial strategy. These policies are central to downstream mineral development and value-added manufacturing—pillars of Indonesia’s long-term economic transformation. The ruling thus protects not just one commodity, but a framework of industrial competitiveness.