Indonesia proposes limited FTA with US on minerals
Indonesian Coordinating Minister of Maritime Affairs and Investment Luhut Pandjaitan said on April 10 that Indonesia will propose a free trade agreement for some minerals shipped to the US so that companies in the electric vehicle (EV) battery supply chain operating in the country can benefit from the US tax credits.
Indonesian Coordinating Minister of Maritime Affairs and Investment Luhut Pandjaitan (Photo: Reuters)
Jakarta (VNA) – IndonesianCoordinating Minister of Maritime Affairs and Investment Luhut Pandjaitan said on April 10 that Indonesia will propose a free tradeagreement for some minerals shipped to the US so that companies in the electricvehicle (EV) battery supply chain operating in the country can benefit from theUS tax credits.
The UShas issued a new guidance for EV tax credits under the Inflation Reduction Act(IRA), requiring a certain value of battery components to be produced orassembled in North America or a free trade partner.
Indonesiadoes not have a free trade agreement with the US, but its nickel products haveincreasingly become important in the supply chain.
TheSoutheast Asian country has been trying to leverage its nickel reserves, theworld's biggest, to attract investment from battery and EV makers, including UScompanies such as Tesla and Ford.
The minister told a nꦚews conference that Jakarta will propose a limited fr💃ee trade agreement(FTA) with Washington./.
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Indonesian Coordinating Minister of Maritime Affairs and Investment Luhut Pandjaitan (Photo: Reuters) 
