Breaking the Impasse of the National Automotive Industry Development in International Trade Law

The President of the Republic of Indonesia officially inaugurated the Esemka as the National Automotive Industry. Although often referred to as a "national car", it is a domestic brand produced locally. However, the correct usage of the term national car is often debated. Historically given special privileges to PT Timor Putra Nasional, the Indonesian government, as the producer of Timorese cars, was once found guilty by WTO. The article examines the legal challenges and chances of International Trade Law in developing Indonesia's national car industry compared to Malaysia's national car, Proton. The study reveals that as a developing country, Indonesia can request several "facilities" from the WTO to develop its national car industry as an infant industry. Indonesia can take inspiration from Malaysia's approach to encourage the use of diversified technological sources, urge transnational companies to make subcontracting agreements for component supplies and link the automotive industry to other strategic industries. Developing the national car industry to ensure it no longer violates WTO trade provisions lies in the process of communication and request to the WTO that Indonesia temporarily apply some facilities, which may include tariff and non-tariff barriers, as part of its effort to develop the national car industry.