ANALYSIS OF DEVELOPING COUTRIES INVOLVEMENT IN USING THE WORLD TRADE ORGANIZATION DISPUTE SETTLEMENT SYSTEM BASED ON EXPERIENCE OF INDONESIA (S000413)

The success of the World Trade Organization (WTO) in regulating world trade is inseparable from its dispute settlement system that previously existed in the General Agreement on Tariffs and Trade (GATT). After being introduced in 1995,
this system begun to be used by many of the WTO member countries, especially developing countries since it has several special provisions for them. However, among the WTO developing country members, Indonesia is less active in utilizing the WTO dispute settlement.

Therefore, it is interesting to find the reasons why Indonesia is less active
in using this system. There are 3 aims of this thesis. The first is to analyze the parties that may be involved in the dispute settlement process in the WTO. The second is to analyze the Indonesian Institutions tackling problems that occur between Indonesia and other the WTO member states. While, the third is to analyze obstacles faced by Indonesia as a developing country utilizing the WTO dispute settlement.

The data which is needed in this thesis is obtained by library research. The
library research is conducted to obtain secondary data by using primary, secondary, tertiary sources. In addition, in order to depict the obstacles faced by Indonesia accurately, this research also conducts some limited field research in the form of interview.

The result of research shows that only certain parties can be involved in
the WTO dispute settlement. However, in order to settle its problems, Indonesia has 3 institutions tackling problems that occur between Indonesia and other the WTO member states. Then, it is found that there are several obstacles causing Indonesia less utilizing the WTO dispute settlement system such as the unwillingness of Indonesia government, the absence of legal instrument on
funding, and the lack of internal experts of Indonesia.

Recommended to Indonesia shall arrange a strong legal instrument on funding of dispute in the WTO dispute settlement in order to prevent Indonesian domestic industries from the unfair action; Indonesia shall entrust its domestic lawyers and staff from related ministry to represent its interest in the WTO dispute settlement; and finally Indonesia shall work together with universities to open the study of the WTO. Thus, the government can educate experts earlier and later they can be used to defend the interests of Indonesia in the WTO dispute settlement.