Between Reform and Paralysis: Indonesia, WTO Uncertainty, and the Case for the Multi-Party Interim Appeal Arbitration Arrangement (MPIA)
Date:
1 September 2025Category:
Global Governance and Multilateralism, TradeType:
Policy BriefsTags:
MPIA, Trade, WTO, IndonesiaPrint Article:
Indonesia’s potential accession to the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) represents a timely and strategic step to restore legal certainty in World Trade Organization (WTO) dispute settlement. The paralysis of the WTO Appellate Body has weakened the multilateral trading system, leaving disputes unresolved and undermining confidence in global trade rules.
The MPIA offers a credible, binding alternative that preserves appellate review. By joining, Indonesia could safeguard its key export sectors, prevent disputes from being ‘appealed into the void,’ and align with other ASEAN Member States that are already participants.
This policy brief assesses the relevance and implications of MPIA membership for Indonesia, highlights the risks of non-participation, and outlines policy options. It recommends that Indonesia consider joining the MPIA while simultaneously:
• Advocating for comprehensive WTO reform, and
• Leveraging regional mechanisms to safeguard its trade interests.
