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Menko Airlangga: Indonesia Offers Critical Mineral Investments To The US

Coordinating Minister for Economic Affairs Airlangga Hartarto has revealed that the Indonesian government is making a second-best offer, which includes investments in the critical mineral sector in collaboration with Danantara Indonesia.

"Indonesia is also offering critical minerals to America in partnership with Danantara to invest in the critical mineral ecosystem," Airlangga stated in Jakarta on Monday.

He elaborated that the critical minerals being offered include copper, nickel, and the necessary components for the electric vehicle (EV) industry, military equipment, and the electronics sector.

Furthermore, the investment being offered to the United States pertains to brownfield projects or those that are already in progress, such as PT Freeport.

Airlangga stated that the offers in the critical mineral sector are quite appealing to the United States. However, he could not disclose further details as discussions are still being held confidentially, in relation to a non-disclosure agreement.

"The EV ecosystem is related to nickel and other elements, and this is already in place. For America, this is quite interesting; Indonesia's offer is indeed appealing," he added.

Previously, the Indonesian government had presented the second-best offer in an effort to negotiate reciprocal tariffs imposed by President Donald Trump of the United States.

As the deadline for negotiations approaches on July 8, Airlangga mentioned that the requests made by the U.S. government, whether concerning tariffs or trade barriers, have been agreed upon by the Indonesian government.

"Our tariff negotiations have already conveyed Indonesia's second best offer. Several requests from the United States have been partially addressed, including those related to tariffs, non-tariff barriers, and commercial matters," stated Airlangga during an encounter at the Presidential Palace in Jakarta on Friday, June 27.

Airlangga elaborated that his team has directly communicated with U.S. Treasury Secretary Scott Bessent, who, in principle, appreciates several offers made by Indonesia.

However, it is important to note that the final decision regarding the tariff negotiations between Indonesia and the U.S. does not rest solely with one party.

The U.S. government must coordinate with the United States Trade Representative (USTR), the Department of Commerce, and the Department of the Treasury.

The final outcome of the negotiations, which have involved multiple exchanges of documents between Indonesia and the U.S., remains dynamic as it takes into account other countries that are also engaged in tariff negotiations.

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Tag: Electric Vehicle Menko Airlangga