The The Regulation of Bottled Water Export and Import in Indonesia: A Legal Comparison with WTO Principles

Bottled water regulation WTO principles GATT 1994 administrative law export restrictions

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February 26, 2026

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Indonesia's policy of restricting the export of domestically produced mineral water while permitting imports of foreign brands reflects the tension between national resource sovereignty, economic liberalization, and international trade commitments. This study examines Indonesia's administrative legal framework governing bottled water trade through the lens of World Trade Organization (WTO) principles. Employing a normative legal research methodology with comparative analysis, this research analyzes Indonesia's regulatory instruments, including Law No. 7 of 2014 on Trade, Law No. 17 of 2019 on Water Resources, and ministerial regulations, comparing them against GATT 1994 Articles I, III, XI, and Article XX(g) exceptions. The findings reveal that Indonesia's multi-layered permitting system, resource-based restrictions, and de facto domestic market obligations create significant barriers to export competitiveness while potentially violating WTO non-discrimination principles. However, Indonesia may invoke Article XX(g) environmental exceptions if export restrictions are transparently linked to groundwater conservation and applied consistently to domestic production. This study recommends regulatory harmonization, transparent licensing procedures, mutual recognition agreements, and coordination between administrative and environmental policies to balance constitutional mandates with international trade obligations.