Indonesia wants to discuss critical minerals trade deal with the U.S.

Indonesia has requested talks with the United States to establish a trade deal for critical minerals. This would enable exports from Indonesia, which holds the world’s largest nickel reserves, to be covered under the U.S. Inflation Reduction Act. Such a deal would potentially allow Indonesian exports to qualify for tax credits when used in electric vehicle (EV) batteries sold in the United States.

The request was made during a meeting between Indonesian President Joko Widodo and U.S. Vice President Kamala Harris on the sidelines of ASEAN meetings in Jakarta.

Under the U.S. Inflation Reduction Act, a certain amount of critical minerals in EV batteries must be produced or assembled in North America or a free trade partner for EVs sold in the United States to be eligible for tax credits. Indonesia lacks a free trade agreement with the United States but has ambitions to become a significant player in EV and battery manufacturing, leveraging its extensive nickel reserves.

President Jokowi noted that Indonesia can become a supplier for batteries and EVs in the U.S. due to its substantial nickel reserves. He invited the U.S. to discuss the formation of a Critical Mineral Agreement. Additionally, he expressed hope that Indonesia’s involvement in the U.S.-led Indo-Pacific Economic Framework (IPEF) could allow its mineral exports to qualify for “green subsidies” under the Inflation Reduction Act.

The proposal for a limited free trade deal with the United States was initially brought up in April by Indonesian minister Luhut Pandjaitan. The goal is to offer the U.S. an agreement similar to the one between Japan and the U.S. for EV battery minerals.

During the meeting, Vice President Harris expressed her commitment to working with Indonesia to build supply chains that include critical minerals required for clean energy economies and to boost trade between the two countries through IPEF.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

German economic struggles send ripples through Central European nations

The German economy’s current challenges are reverberating across export-dependent Central European countries such as Hungary, the Czech Republic, and Slovakia. The close trade ties and historical reliance on Germany, particularly its auto sector, have traditionally benefited these countries…

ASEAN has turned the second China shock into a strategic opening

Southeast Asia is turning what many feared would be a second “China shock” into a strategic opening. Instead of being crushed between U.S. tariffs on China and a flood of Chinese exports looking for new markets, the ASEAN region is quietly stepping into the space China is losing in the U.S. and using the moment to reposition itself at the center of a more fragmented global trading system.

Exports from ASEAN to the United States jumped by about 23% year-on-year in September, with Thailand and Vietnam leading the charge. In parallel, China’s share of U.S. imports has continued to erode under the weight of punitive tariffs. The arithmetic behind the shift is straightforward: the effective U.S. tariff rate on Chinese goods has climbed to roughly 31%, while for many ASEAN economies it is nearer 11%.

Global shipping disruptions drive oil tanker shippers to secure longer charter contracts

Rising oil tanker chartering rates due to global shipping disruptions are compelling oil shippers to secure longer-term shipping charters, according to executives speaking at an energy conference in Houston this week. The global oil tanker fleet is now required to cover longer distances to deliver…

Stay informed

error: Content is protected !!