Indonesia ready to supply EV batteries to United States
Jakarta, The Gulf Observer: Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, expressed Indonesia’s readiness to become a supplier of electric vehicle (EV) batteries to the United States (US).
“Indonesia is ready to cooperate in the development of electric vehicles, especially as a supplier of electric vehicle batteries to the United States,” he noted during a meeting with the US Trade Minister, Gina Raimondo, on the sidelines of the Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial meeting in Detroit, the US, according to information received in Jakarta, Saturday.
During the meeting on May 26, Hartarto stated that Indonesia, as a country with large nickel reserves, could become a strategic partner for the US in developing EVs.
According to the US Geological Survey data, Indonesia has the biggest nickel reserves, reaching 21 million tons, or equivalent to 22 percent of the global reserves. Indonesia’s nickel production also ranks first, at one million tons, exceeding the Philippines, at 370 thousand tons, and Russia, 250 thousand tons.
US Trade Minister Raimondo lauded Indonesia’s support in the Indo-Pacific Economic Framework and said that cooperation in the development of EV batteries could have a major impact on both countries, especially in opening job opportunities.
“IPEF can become an entry point for investment by American businesses in Indonesia, particularly in the critical mineral, semiconductor, and high-tech sectors,” she remarked.
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Speaking in connection with this matter, Hartarto said that Indonesia had conducted various structural reforms, one of which was through the Omnibus Law (Job Creation Law) to increase foreign direct investment (FDI) and improve the investment climate in Indonesia.
At the meeting, the two ministers also discussed the implementation of the Inflation Reduction Act (IRA) in the US and opportunities for tapping into critical mineral products from Indonesia.
Hartarto then emphasized the need for various concrete projects in Pillar III of IPEF, including the implementation of the Partnership for Global Infrastructure and Investment (PGII) in the area with sustainable infrastructure development.
It is believed that the implementation of PGII will provide domestic support for participating countries in advancing the Pillar III negotiations.
The meeting was held during a series of events attended by Hartarto at the IPEF Ministerial Meeting held on May 26-27, 2023, in Detroit, the US.
