Arsjad Rasjid, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) and the ASEAN Business Advisory Council (ASEAN-BAC) urged the United States to be fairer in providing green subsidies for minerals for electric vehicles. Arsjad also expressed concern over the 'exclusion' of Indonesia's critical minerals from the US subsidy package for green technology.<\/p>\n
The US government will issue tax credit guidelines for battery and EV manufacturers under the Inflation Reduction Act in the coming weeks. This law includes $370 billion in subsidies for clean energy technologies. However, it is feared that batteries containing Indonesian-sourced components will still be ineligible for the full Inflation Reduction Rate (IRA) tax credit, due to Indonesia's lack of a free trade agreement with the US and the dominance of Chinese companies in the nickel industry.<\/p>\n
Indonesia as a Nickel Supplier for the United States Electric Vehicle Industry<\/p>\n
Arsjad, who also serves as President Director of Indika Energy, emphasized that Indonesia can play an important role in fulfil the United States' needs for electric vehicles and batteries. This is because Indonesia has one-third of the world's total nickel reserves which puts Indonesia in the first position. Nickel is an important material for the production of electric vehicle batteries.<\/p>\n
Indonesian Collaboration with Multinational Companies to Build Nickel Supply Chains in the Development of Electric Vehicles<\/p>\n
Arsjad Rasjid said that Indonesia was working with multinational companies to build separate nickel supply chains for China and Non-China.<\/p>\n
\"Indonesia is a friend to China and western countries. We provide important minerals to China, the United States, and the European Union. We strive to ensure that we have an inclusive portfolio of both China and non-China in the nickel mining sector in order to reach a fair and mutually beneficial trade agreement,\" he said. Arsjad said.<\/p>\n
Various countries have invested in Indonesia in the mining sector, particularly for the development of electric vehicles and batteries. Some of them, LG, SK Group, Samsung, and Hyundai. These three investors are important in the downstream nickel industry including cathodes, battery cells, and vehicle production. LG Energy Solution is also present, which is building an electric vehicle battery factory in Indonesia with electric car manufacturer Hyundai.<\/p>\n
Arsjad Rasjid Encourages the United States to Recognize the Role of Indonesia and ASEAN as Equal Partners in the Indo-Pacific Economic Framework.<\/p>\n
In addition, Arsjad also emphasize the importance of seeing Indonesia and ASEAN as an alternative to China. Arsjad Rasjid hopes that the United States will give equal status to members of the Indo-Pacific Economic Framework (IPEF) with countries that have full free trade agreements with the United States. \"We are discussing about IPEF, and the spirit of the agreement is cooperation. If America excludes ASEAN, it feels very unfair,\" said Arsjad.<\/p>\n
In the electric vehicle development industry, Arsjad also invites the United States and the European Union to put their trust in Indonesia and other ASEAN countries. With the important roles of Indonesia and ASEAN in the electric vehicle supply chain, Arsjad is optimistic that this region will become a strategic partner for both the United States, the European Union and China in the clean energy sector. This step is expected to strengthen economic and political relations for ASEAN to the global, as well as provide benefits for industry and the Indonesian economy.<\/p>\n
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