Officials from Indonesia and the United States (US) met in Washington, D.C., on Monday, October 23, 2023, and talked plans to work jointly in the critical minerals, cyber and maritime security, and semiconductor sectors, the US State Department said. 

During the discussion of what they claimed to be their first-ever Senior Officials’ Foreign Policy and Defense Dialogue, officials from both nations stated that they held similar views on the necessity of safe supply chains, environmentally sound key infrastructure, and regional economic stability, as well as the threat posed by the climate crisis and the need to speed up the transition to clean energy. 

“To address these challenges and reduce emissions, officials from both countries discussed next steps to realize new cooperation initiatives related to critical minerals, cyber and maritime security, semiconductors, the innovative Just Energy Transition Partnership, and small modular reactors”, they said in a joint statement. 

The US delegation was led by Dr. Ely Ratner, Assistant Secretary of Defense for Indo-Pacific Security Affairs, and Assistant Secretary of State for East Asian and Pacific Affairs, Daniel Kritenbrink. Meanwhile, Major General Bambang Trisnohadi, Director General of the Ministry of Defense for Defense Strategy, and Ambassador Umar Hadi, Director General of the Ministry of Foreign Affairs for American and European Affairs, led Indonesia's 

The two sides said they reaffirmed both countries' intentions to upgrade the US-Indonesia relationship to a comprehensive strategic partnership to further enhance collaboration across a number of industries. When President Joko Widodo is scheduled to visit Washington, D.C., in November, Mr. Kritenbrink said he would be happy to welcome the president to further pursue this shared will. 

The two countries also underlined the significance of the Indo-Pacific Economic Framework for Prosperity (IPEF) and welcomed endeavors to conclude IPEF negotiations on the Clean Economy Pillar and the Fair Economy Pillar amid the APEC Economic Leaders’ Week in San Francisco this November. 

President Joko Widodo requested last month that the US begin drafting a Critical Minerals Agreement (CMA), as Indonesia made clear that it is prepared to supply the US with Electric Vehicles (EV) batteries. 

According to US instructions for EV tax credits under the Inflation Reduction Act (IRA), a predetermined percentage of the essential minerals used in the battery must be extracted or processed in a nation with whom the US has a Free Trade Agreement (FTA). Yet, despite being the world's greatest nickel producer at the moment, Indonesia does not have an FTA with the US.  

The IPEF represents Washington's first significant pan-Asian trade engagement initiative in the last ten years. Through its involvement in the framework, Indonesia is one of the nations hoping that the US will open its doors to IRA benefits.