[CTC] Harris, in Indonesia, calls for ‘resilient’ critical minerals supply chains

[Arthur Stamoulis]

Harris, in Indonesia, calls for ‘resilient’ critical minerals supply chains
Inside US Trade, September 6, 2023 at 2:11 PM
The U.S. will work with Indonesia to ensure “resilient” supply chains for critical minerals, Vice President Kamala Harris said in Jakarta this week, committing to boost trade between the two countries.
Harris is in Indonesia for an Association of Southeast Asian Nations summit as well as bilateral meetings with ASEAN leaders. On Wednesday, the vice president met with Indonesian President Joko Widodo. Indonesia has pressed the U.S. to ensure it benefits from U.S. tax credits under the Inflation Reduction Act, proposing that critical minerals key to electric vehicle batteries be addressed via the Indo-Pacific Economic Framework for Prosperity.
Harris told Widodo that the U.S. “look[s] forward to working with you to increase the flow of goods and services between our nations, including through the Indo-Pacific Economic Framework,” according to remarks <https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/09/06/remarks-by-vice-president-harris-and-president-joko-widodo-of-the-republic-of-indonesia-before-bilateral-meeting/> released by the White House.
“We will also continue to work with Indonesia to build resilient supply chains, including for the critical minerals required to expand our clean energy economies,” she added, without elaborating.
Indonesia, a member of all four IPEF pillars, has pushed for talks on critical minerals <https://insidetrade.com/node/177383> to be included in the framework, appealing directly to Deputy USTR Sarah Bianchi in July. A U.S. official at the time said that critical minerals had been discussed as a part of the framework’s broader focus on supply chain resilience but not as part of “a new IPEF-led critical minerals pact.”
Earlier this year Indonesia floated the idea of a “limited” free trade agreement <https://insidetrade.com/node/176617> with the U.S. to ensure it can benefit from IRA tax incentives for electric vehicles. Indonesia is home to a large reserve of nickel, a key ingredient in battery production.
According to Indonesia’s readout <https://setkab.go.id/presiden-joko-widodo-dan-wapres-kamala-harris-bahas-perwujudan-kemitraan-strategis-indonesia-as/> of the meeting with Harris, Widodo “encouraged the realization of” a critical minerals agreement, saying it would aid in “cooperation related to critical minerals and the realization of the just energy transition partnership partnership,” according to an informal translation.
The Biden administration has agreed to a limited deal with fellow IPEF member Japan on critical minerals for the sake of IRA eligibility. The administration also is in talks on this issue with the European Union; the U.S. and the United Kingdom have similarly said they would launch such negotiations.
During the bilateral meeting, Widodo also advocated for expanding market access for Indonesian goods via the Generalized System of Preferences, according to Indonesia’s readout. GSP lapsed at the end of 2020 and has not yet been renewed by Congress.
According to a White House readout <https://www.whitehouse.gov/briefing-room/statements-releases/2023/09/06/readout-of-vice-president-kamala-harriss-meeting-with-president-joko-widodo-of-indonesia/> of the Harris-Widodo meeting, the two sides have agreed to “elevate the U.S.-Indonesia relationship to a Comprehensive Strategic Partnership.” This includes a focus on “economic growth and development,” energy, the digital economy and sustainability, among other issues, the readout says. -- Hannah Monicken (hmonicken at iwpnews.com <mailto:hmonicken at iwpnews.com>)

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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