The U.S. is following up on its end of 2023 talks to involve Indonesia in its critical minerals and electric vehicle battery supply chains. However, making progress in the talks would require that Indonesia enforces Environmental, Social, and Governance (ESG) principles. The proposed Critical Minerals Agreement (CMA), discussed by Presidents Joko Widodo and Joe Biden, was initiated by Indonesia to include the country as a key critical mineral supplier to the US. During a visit to Jakarta on 14-15 July, US Under Secretary of State for Economic Growth, Energy, and Environment, Jose W. Fernandez, met with stakeholders from the Indonesian government and private sector representatives, discussing opportunities for Indonesia's processed critical minerals, including nickel. Fernandez emphasised the positive direction of the CMA talks, but declined to comment on when a deal may be reached. The US also invited Indonesia to join the Minerals Security Partnership (MSP) Forum. Fernandez believes that becoming a member of the forum will drive responsible investment, requiring Indonesia to uphold high ESG standards. Additionally, Fernandez explored the potential of cooperation in developing Indonesia’s semiconductor sector. The US plans to include Indonesia in a list of seven countries that are supported to become semiconductor hubs under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act. Support given to Indonesia can include investments in the technology and industrial sector as well as education and capacity development in fields related to semiconductor production. (ICE GIACARTA)

Fonte notizia: Reuters, 16 July 2024