Minister of Economic Affairs, Airlangga Hartarto, met with the United States Trade Representative (USTR) during the Indo-Pacific Economic Framework (IPEF) event in Detroit, US.
The purpose of the meeting was to encourage American investors to invest in various energy transition projects in Indonesia, aiming to realize a green economy in the Indo-Pacific region.
Critical minerals and sustainable economy
“With a more conducive business climate, Indonesia’s strategic position in ASEAN, and the high economic growth post the global disruption in 2020-2022, Indonesia has become an attractive destination for foreign investors,” said Hartarto on May 27, 2023.
Various strategic economic topics were discussed between Hartarto and Deputy USTR Sarah Bianchi.
These topics included the IPEF negotiation process, potential cooperation between the two countries in the field of energy transition, and the strategic position of Critical Minerals within the IPEF.
Regarding Critical Minerals in the IPEF, Airlangga emphasized the importance of a resilient and competitive sustainable economy to support decarbonization technology transformation.
“Indonesia seeks cooperation and downstream activities in the field of Critical Minerals extraction and other raw materials needed for clean energy,” he stated.
Critical Minerals were one of the main topics discussed in Pillar II Supply Chain of the IPEF, as the US government is currently focused on developing a global supply chain in the Indo-Pacific region to enhance economic growth and global energy security.
Optimistic outlook for global demand in environmentally friendly products
In addition, Airlangga expressed the Indonesian government’s target for downstream activities in the high-tech clean energy ecosystem.
This includes the development of manufacturing capabilities for electric vehicle batteries, electronic components, solar panels, and semiconductors.
Meanwhile, Deputy USTR Bianchi praised Indonesia’s constructive participation and contribution in the third round of IPEF negotiations held in Singapore from May 8 to May 15, 2023.
“The US government hopes to achieve significant progress in the negotiations of Pillar I of the IPEF before the Presidential-level IPEF meeting in November 2023,” Bianchi stated.
As known, the USTR is responsible for the negotiation process of Pillar I of the IPEF, while the US Department of Commerce handles Pillars II-IV.
Deputy Bianchi also highlighted several clusters within Pillar I of the IPEF that are of focus to the US, including Trade Facilitation, Services Domestic Regulation, Agriculture, Environment, and Labor.
Continuing the discussion on energy transition, Deputy Bianchi expressed optimism that there will be an increase in global demand for environmentally friendly products, including electric vehicles.
The meeting between Airlangga and Deputy USTR Bianchi concluded with both countries expressing their mutual desire to conclude the IPEF negotiations across all pillars (Pillars I-IV) and to establish a clean energy ecosystem in the Indo-Pacific region.
