RATIFYING THE WTO AGREEMENT ON FISHERIES SUBSIDIES: THE CHALLENGES AND OPPORTUNITIES FOR INDONESIA

Indonesia, as the world’s second-largest seafood producer, faces significant challenges in managing fisheries subsidies due to their impact on overfishing, Illegal, Unreported, and Unregulated (IUU) fishing, and marine resource depletion. The World Trade Organization (WTO) Agreement on Fisheries Subsidies (AFS), adopted in 2022, seeks to address these issue by eliminating harmful subsidies. For the AFS to enter into force, ratification by two-thirds of WTO members is required. However, Indonesia has yet to ratify the agreement, as this decision hinges on balancing national interests and sustainability goals. Indonesia’s reliance on fuel subsidies, which predominantly benefit small-scale fishers, presents both challenges and opportunities.

This study aims to assess Indonesia's capability to ratify the AFS, focusing on two main objectives: (1) evaluating the alignment of Indonesia's Law No. 7 of 2016 concerning the Protection of Fishermen, Fish Farmers, and Salt Farmers with the AFS and (2) identifying the challenges and opportunities associated with ratification.

The research employs normative legal research, using library-based research to analyze statutes, treaties, and reports from the WTO, Indonesia’s Ministry of Marine Affairs and Fisheries, and other international studies. Data from legal and policy documents were supplemented by interviews with officials from the Directorate of Legal Affairs and Territorial Treaties at Indonesia’s Ministry of Foreign Affairs.

The study reveals that while Indonesia’s Law No. 7 of 2016 partially aligns with the AFS, critical gaps persist in transparency and subsidy regulations. Indonesia has the legal capability to ratify the AFS but faces technical and institutional limitations, particularly in Monitoring, Control, and Surveillance (MCS) systems. Ratification poses socioeconomic risks for small-scale fishers, but offers potential benefits such as enhanced global standing in achieving Sustainable Development Goals (SDGs).

To address these challenges, Indonesia should amend its legal framework, strengthen institutional and negotiate Special and Differential Treatment (SDT) provisions for small-scale fishers. International support, and technical assistance will be crucial in facilitating a just transition and ensuring Indonesia's readiness to ratify the AFS.