Indonesia suggests trade deal for vital minerals with US.
JAKARTA Asks U.S. for Trade Deal on Critical Minerals
The Indonesian government has requested the United States to initiate discussions on a trade agreement for critical minerals. This move aims to ensure that exports from Indonesia can be covered under the U.S. Inflation Reduction Act. The request was made during a meeting between Indonesian President Joko Widodo and U.S. Vice President Kamala Harris on the sidelines of the Association of Southeast Asian Nations (ASEAN) meetings in Jakarta.
Under the guidelines of the U.S. law issued in March, a certain amount of critical minerals in electric vehicle (EV) batteries must be produced or assembled in North America or a free trade partner. This requirement allows EVs sold in the United States to be eligible for tax credits. However, Indonesia does not have a free trade agreement with the United States. Nevertheless, the resource-rich country aims to become a major player in EV and battery manufacturing, leveraging its vast nickel reserves.
Indonesia, known for holding the world’s largest nickel reserves of 21 million metric tons, believes it can become a significant supplier of batteries and EVs to the U.S. market. President Joko Widodo, popularly known as Jokowi, stated, “Indonesia invites the U.S. to discuss the formation of the Critical Mineral Agreement.”
Furthermore, President Widodo hopes that Indonesia’s involvement in the U.S.-led Indo-Pacific Economic Framework (IPEF) will enable its mineral exports to be recognized for “green subsidies” under the inflation act.
The proposal for a limited free trade deal with the United States was initially raised in April by senior Indonesian minister Luhut Pandjaitan. He expressed Jakarta’s desire to offer Washington an agreement similar to the March deal between Japan and the Western power for EV battery minerals.
Vice President Harris, in her opening speech during the bilateral meeting, expressed her commitment to working with Indonesia to establish supply chains that include “critical minerals required to expand our clean energy economies.” She also emphasized the importance of boosting trade between the two countries through the IPEF.
(Reporting by Gayatri Suroyo; Editing by Kanupriya Kapoor)
As Secretary of State Antony Blinken visits Ukraine to offer commitments of further military assistance, GOP Senators are raising concerns about the Biden Administration’s goals in Ukraine.
New York Governor Kathy Hochul met with President Biden last week to discuss the state’s ongoing migrant crisis. One America’s Caitlin Sinclair with more.
Hunter Biden is expected to receive a Gun Charge, while Tucker Carlson hosts a guest claiming to have intimate knowledge of Obama.
Former Assistant U.S. Attorney and Watergate author John O’Connor says that what Joe Biden is accused of doing is worse than anything Nixon ever did.
By Brenda Goh SHANGHAI (Reuters) – Huawei Technologies’ new high-end smartphone contains more China-made chip components than previous models in a sign…
By Ron Bousso LONDON (Reuters) – BP launched on Thursday Britain’s largest electric vehicle charging hub near Birmingham, capable of serving up…
By Barbara Lewis and Supantha Mukherjee LONDON/STOCKHOLM (Reuters) – At leading Swedish university Lund, teachers decide which students can use artificial intelligence…
By Huw Jones LONDON (Reuters) – Global financial regulators and the International Monetary Fund on Thursday set out a roadmap to coordinate…
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
