Airlangga: U.S. Set to Prioritize Critical Minerals Under Trump’s Leadership

JAKARTA, RAKYAT NEWS – Coordinating Minister for Economic Affairs Airlangga Hartarto has expressed optimism that the United States, under Donald Trump’s leadership, will adopt a more progressive approach to the development of critical minerals.

Speaking at the 2024 Indonesia Mining Summit in Jakarta on Wednesday, Airlangga noted that the U.S. Inflation Reduction Act (IRA) will play a key role in this transition. “With President Trump’s new administration, I believe the U.S. will prioritize critical minerals. The IRA ensures subsidies for automotive and other products only if the critical minerals used are not controlled by certain countries,” he explained.

The Inflation Reduction Act, signed into law on August 16, 2022, focuses on reducing inflation, advancing clean energy transitions, and strengthening the U.S. tax system. A significant component of this legislation is its emphasis on critical minerals, which are essential for clean energy technologies like electric vehicle batteries.

Airlangga cautioned that Indonesia must prepare for the implications of this policy. The IRA could limit Indonesia’s access to the U.S. market for downstream mineral products, particularly electric vehicle batteries, if the minerals are not sourced in compliance with U.S. regulations.

Despite these challenges, Airlangga emphasized that Indonesia is ahead of many countries, including the U.S. and the European Union, in regulating critical minerals. He highlighted Indonesia’s 2009 Mining Law, which predates similar laws in both regions. “The EU is just now implementing regulations on critical minerals, while we’ve been leading for years,” he said.

Indonesia’s progress in mineral downstreaming has garnered international attention, according to Airlangga. He pointed to Indonesia’s strategic partnerships with countries like Canada, exemplified by the signing of the Comprehensive Economic Partnership Agreement (ICA-CEPA) and a Memorandum of Understanding (MoU) on critical minerals development.