| dc.description.abstract | In achieving cooperation in green economic and infrastructure development within
the ASEAN region, the Indonesian Government, through Presidential Regulation
Number 79 Year 2023, has committed to accelerating economic transformation by
implementing subsidies for the advancement of electric vehicles (EVs). This policy
aims to enhance investment attractiveness within the EVs ecosystem, expand
employment opportunities, expedite the transition from fossil fuel to electric energy
use, and consequently accelerate emission reduction and energy subsidy efficiency.
In international trade, subsidies are viewed as a form of unfair competition and
therefore must be constrained. This study assessed whether Indonesia’s legal
framework concerning the EV subsidy is consistent with the WTO regulations and
what are the potential legal consequences for Indonesia arising from its BBEVs
subsidy’s rules within the framework of WTO regulations. The study adopted
normative legal research by analysing legal documents within the WTO, including
GATT and SCM Agreement. Furthermore, it employed a statute approach,
conceptual approach, and comparative approach to assess the implementation of
subsidies for BEVs in Indonesia compared to other countries. To answer the
problem formulations, the author used secondary data which gathered through a
library research method, including legal texts, regulations, scholarly publications,
research papers, working papers, official online databases and archives, and online
news sources. The results showed that, firstly, Indonesian regulations pertaining to
EVs are classified as an actionable-subsidies, often referred to as "yellow light"
subsidies, which means they are not subject to legal challenges initiated by member
states of the WTO. However, Indonesia could potentially encounter challenges
within the WTO framework if the regulations associated with electric vehicles
result in substantial adverse impacts on other WTO member states. Secondly, these
challenges could materialize for Indonesia in the form of the imposition of
countermeasures or even retaliatory actions. Therefore, the Indonesian government
should enhance discernment when formulating policies pertaining to regulations
governing EV subsidies, by evaluating the prior EV subsidy’s policies from
Norway, Colombia, United States, and China. The government can effectively
support the deployment of EVs by transitioning from direct subsidies to market-
based financial policy, such as EV feebates policy. Additionally, enhancing
environmental regulations such as imposing carbon taxation across all sectors and
conducting immersive green campaigns are suggested measures that can positively
shape public perception of EVs. This nuanced approach not only aligns with WTO
regulations but also ensures sustainable development and maintains harmony with
international trade norms. | en_US |
