Aligning Indonesia’s Trade Regulations With WTO Obligations: Legal Analysis of Policy Space and Compliance

Abstract

This article aims to analyze the link between Indonesian public policy and its membership in the World Trade Organization (WTO), focusing on how national laws are transforming to meet international obligations within the multilateral trading system. After ratifying the WTO thru Law Number 7 of 1994, Indonesia faced various challenges and opportunities in navigating global trade liberalization, ranging from tariff and non-tariff reforms, regulatory adjustments in the service and intellectual property sectors, to economic diplomacy strategies and international trade disputes. On the one hand, WTO membership provides wider market access and encourages domestic regulatory reform, while on the other hand, it demands consistency with the principles of non-discrimination, predictability, and fair competition, which can limit national policy space. This article also highlights the future direction of Indonesia's trade policy, including industrial downstreaming, strengthening SMEs, digital trade, and sustainable trade. The author emphasizes that Indonesia's success in the era of global trade requires structural reforms, proactive economic diplomacy, and synergy between national interests and international commitments.