Arie Kusuma Paksi
Department of International Relations, Universitas Muhammadiyah Yogyakarta, Indonesia

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From Extraction to Inclusion: How Indonesia’s Bauxite Downstreaming Shapes Decent Work and Economic Growth Fiya Ainur Rohmatika; Arie Kusuma Paksi
Jurnal Mamangan Vol 12, No 2 (2023): Special Issue
Publisher : LPPM Universitas PGRI Sumatera Barat

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22202/mamangan.v12i2.9048

Abstract

Indonesia is one of the world's largest bauxite producers, which since 2023 has implemented a policy prohibiting the export of raw ore as part of its national mineral downstreaming strategy. This policy aims to increase domestic added value, strengthen economic sovereignty, and support the achievement of Sustainable Development Goal (SDG) 8 on decent work and inclusive economic growth. This study aims to analyze the implementation of Indonesia's bauxite downstreaming policy from the perspective of international political economy and sustainable development diplomacy, highlighting economic, social, and institutional dimensions. The method used is a qualitative approach through policy analysis, secondary data from BPS, ESDM, and international scientific publications. The results show that the national alumina refining capacity increased from 1.4 million tons in 2021 to ±5.3 million tons in 2024, accompanied by an expansion of foreign investment, mainly from China. However, this increase in capacity has not been fully accompanied by an improvement in job quality, as 61% of workers in this sector are still on contract with limited skills upgrading. In addition, institutional inequality and the dominance of foreign investors indicate the continued weakness of national control in the global alumina value chain. In conclusion, the downstreaming of Indonesian bauxite has contributed to economic growth and sustainable industrial diplomacy, but its success depends on institutional reform, strengthening national technology, and integrating social aspects so that the transition from extraction to inclusive industrialization can truly be realized in a fair and sustainable manner.
Indonesia’s Diplomatic Efforts in WTO Reform after the 13th Ministerial Conference Zainur Ridho; Arie Kusuma Paksi
Indonesian Perspective Vol 11, No 1 (2026): (Januari - Juni 2026)
Publisher : Universitas Diponegoro

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14710/ip.v11i1.85712

Abstract

Structural stagnation in the World Trade Organization (WTO), such as the paralysis of the Appellate Body and inequality in subsidies and special treatment (S&DT) issues, has encouraged developing countries to demand more inclusive institutional changes. For Indonesia, this stagnation potentially threatens national interests in strategic sectors such as agriculture and fisheries. This study aims to analyze Indonesia's diplomatic strategy as a middle power in encouraging the transformation of the multilateral trading system after the 13th Ministerial Conference (MC13). Using a qualitative-descriptive approach through a single case study and thematic analysis of policy documents, this study found that Indonesia implemented multitrack diplomacy involving the Global South coalition (G33 and LMDC), normative advocacy, and a deliberative approach in multilateral negotiations. As a result, Indonesia managed to secure subsidy exemptions for small-scale fishers, push the principle of capacity-sensitive adjudication in the dispute settlement agenda, and defend the expansion of S&DT coverage. Theoretically, these findings strengthen the concept of middle power diplomacy by demonstrating the effectiveness of normative strategies in the face of global power asymmetry. This study recommends strengthening technical capacity and coordination among domestic institutions to support the consistency and sustainability of Indonesia's diplomatic position in international trade forums.
Indonesia’s Diplomatic Efforts in WTO Reform after the 13th Ministerial Conference Zainur Ridho; Arie Kusuma Paksi
Indonesian Perspective Vol 11, No 1 (2026): (Januari - Juni 2026)
Publisher : Universitas Diponegoro

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14710/ip.v11i1.85712

Abstract

Structural stagnation in the World Trade Organization (WTO), such as the paralysis of the Appellate Body and inequality in subsidies and special treatment (S&DT) issues, has encouraged developing countries to demand more inclusive institutional changes. For Indonesia, this stagnation potentially threatens national interests in strategic sectors such as agriculture and fisheries. This study aims to analyze Indonesia's diplomatic strategy as a middle power in encouraging the transformation of the multilateral trading system after the 13th Ministerial Conference (MC13). Using a qualitative-descriptive approach through a single case study and thematic analysis of policy documents, this study found that Indonesia implemented multitrack diplomacy involving the Global South coalition (G33 and LMDC), normative advocacy, and a deliberative approach in multilateral negotiations. As a result, Indonesia managed to secure subsidy exemptions for small-scale fishers, push the principle of capacity-sensitive adjudication in the dispute settlement agenda, and defend the expansion of S&DT coverage. Theoretically, these findings strengthen the concept of middle power diplomacy by demonstrating the effectiveness of normative strategies in the face of global power asymmetry. This study recommends strengthening technical capacity and coordination among domestic institutions to support the consistency and sustainability of Indonesia's diplomatic position in international trade forums.