Indonesia, United States to enhance economic cooperation: Indonesian FM
Jakarta, The Gulf Observer: The upgrade of Indonesia’s bilateral relationship with the United States to a comprehensive strategic partnership (CSP) lays the foundation for strengthening cooperation, especially in the economic sector, Foreign Affairs Minister Retno Marsudi said.
The upgrade from a strategic partnership to a comprehensive strategic partnership was agreed upon during a bilateral meeting between Indonesian President Joko Widodo (Jokowi) and US President Joe Biden at the White House, Washington D.C., on Monday, local time.
“Indonesia is the only country invited by the US for a bilateral visit to Washington D.C., ahead of the APEC Summit in San Francisco,” the minister informed in a press statement released on Tuesday.
At the meeting, the two presidents agreed in principle to strengthen cooperation on critical minerals. For this, a work plan will be devised for the formulation of a critical mineral agreement (CMA), she said.
“With CMA, Indonesia will be able to become a supplier of electric vehicle (EV) battery needs in the United States, on an ongoing basis, for the long term,” Marsudi added.
Furthermore, the two leaders agreed on the importance of the immediate implementation of the Just Energy Transition Partnership (JETP), a commitment by developed countries, including the US, to fund the energy transition in Indonesia.
“President Jokowi said that the US could support efforts to accelerate Indonesia’s energy transition, including the coal power plant (PLTU) retirement program and the development of Indonesia’s electricity transmission and distribution network,” she said.
According to her, Indonesia has been selected as one of the partners of the International Technology Security and Innovation Fund of the US, which will pave the way for strengthening the semiconductor supply chain.
Meanwhile, in the trade sector, President Widodo reminded the US regarding the importance of extending the Generalized System of Preferences (GSP) for Indonesia.
During Widodo’s visit to the US this time, several intergovernmental cooperation documents were agreed upon, including the Agreement on the Establishment of a Comprehensive Strategic Partnership, as well as cooperation in health, maritime, culture, energy, and mineral resources sectors.
The visit also resulted in business cooperation worth US$25.85 billion (equivalent to Rp405.9 trillion), including investment in the construction of carbon capture storage and petrochemical refineries, nickel processing for EV batteries, and construction of solar modules and panels.
President Biden also conveyed the US’ commitment to support Indonesia’s bid to become a member of the Organization for Economic Co-operation and Development (OECD).
