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Abstrak The World Trade Organization Agreement, aimed to also protect the environment, provides a special provision on environment under article xx. Any dispute arose between parties in respect to the article should be settled trough the WTO Dispute Settlement Mechanism. Although environmental protection should be sought in trade, it is often problematic for developing countries. They generally lack an adequate domestic environmental legislation and its enforcement because they place greater priority on economic development. Indeed, there have been a number of cases fought between developing countries and developed countries on this very issue within the WTO Dispute Settlement Mechanism. In addition, there are several conditions that might prevent them of using the mechanism effectively which includes: lack of understanding of WTO law and its jurisprudences, lack of institutional capacity, and the fear of retaliation from developed countries when bringing the claim against developed countries to Dispute Settlement Mechanism. Indonesia, as one of developing countries also faces the above three problems. This paper will discuss what Indonesia need to prepare so that they can use the Dispute Settlement Mechanism effectively to resolve any dispute (if any) with other country, particularly in respect to the violation of the article XX under the WTO Agreement

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THE NECESSITY OF CAPACITY BUILDING FOR INDONESIA'S EFFECTIVE UTILIZATION OF WTO DISPUTE SETTLEMENT MECHANISM: IMPLEMENTATION OF GATT ARTICLE XX FOR TRADE AND ENVIRONMENT ISSUES