Coordinating Minister for the Economy, Airlangga Hartarto, said that the United States has expressed strong interests in Indonesia’s critical minerals sector in view of the country’s vast reserves of the currently most sought-after industrial commodity.

Airlangga cited that both Indonesia and the U.S. had reached a shared understanding on the path forward and agreed to intensify negotiations over the next three weeks in a bid to reach a mutually beneficial agreement in the wake of the announcement by the Donal Trump administration on the imposition of the 32 percent U.S. import tariff on Indonesian products, which is set to take effect on August 1, 2025.

“Indonesia and the U.S. have agreed to move forward with intensive negotiations based on the principle of mutual benefit,” Airlangga said as quoted in a statement issued on Friday, July 11, 2025.

A key element of Indonesia’s negotiation strategy is its vast reserves of critical minerals such as nickel, manganese, cobalt, and copper which have become increasingly vital to the U.S. clean energy and industrial supply chains.

Airlangga said the U.S. expressed a strong interest in expanding cooperation in this strategic sector. “The U.S. showed strong interest in advancing partnerships in the critical minerals sector,” he added.

Indonesia, the world's largest nickel producer, has been seeking to position itself as a key player in the global energy transition, offering both resource supply and downstream processing potential. “We need to optimize the cooperation and investment potential in critical mineral processing,” Airlangga said.

The trade talks come amid broader concerns over shifting U.S. trade policy under Donald Trump, which has stoked global trade uncertainty. In recent weeks, Indonesia has moved to strengthen commercial ties with American businesses and associations.

During the ongoing visit to the U.S., several Indonesian firms signed memoranda of understanding (MoU) with their U.S. counterparts. The agreements cover purchases of U.S. flagship products and enhanced investment cooperation.

Among the Indonesian signatories were PT Pertamina (energy), PT Busana Apparel Group (textiles), FKS Group, and Sorini Agro Asia Corporindo (food). Meanwhile, the Indonesian Flour Producers Association participated in the event.

Despite the high-stakes negotiations, Airlangga voiced optimism, citing the longstanding and productive relationship between Indonesia and the U.S. “We aim to further enhance Indonesia–U.S. commercial relations,” he said.

Meanwhile, economists have urged the government to look beyond the U.S. market. Riandy Laksono, a researcher at the Centre for Strategic and International Studies (CSIS), said the uncertainty of U.S. trade policy underscores the need to accelerate engagement with Europe.

“Diversifying export markets through Europe presents a significant opportunity. We hear a signing may be imminent,” Riandy said in a CSIS hybrid discussion on Thursday, July 10, 2025.

He also warned that diversification must include upstream components, particularly raw materials, which would require a more predictable investment environment.

“Our investment approach remains too discretionary, not rules-based. This deters long-term investors, especially from developed countries,” Riandy said.

Riandy noted that Indonesia needs a more consistent and transparent regulatory regime to attract high-quality investment.