In a statement released on Tuesday, he expressed his concern over the "exclusion" of Indonesia's critical minerals from the US' subsidy package for green technologies.
"Indonesia can play a key role in fulfilling the needs of EVs and its batteries in the US. In fact, Indonesia accounts for a third of the world's nickel reserves, putting Indonesia in the first rank. Nickel is a crucial material for manufacturing EV batteries," he stated.
Meanwhile, the US government will issue a set of tax credit guidelines aimed at EV and battery producing countries under the Inflation Reduction Act (IRA) that covers US$370 billion in the form of subsidies to clean energy technology.
However, there are concerns over the compatibility of batteries containing Indonesian components to the IRA's tax credit requirements, due to the absence of a free trade agreement between Indonesia and the US and the Chinese companies' dominance in the nickel industry.
Moreover, Rasjid revealed that Indonesia is currently cooperating with multinational companies to develop separate China and non-China nickel supply chains.
"Indonesia has been a friendly partner to China and Western countries. We provide essential minerals for China, the US, and the European Union (EU). We vouch to ensure an inclusive portfolio both to China and others in the nickel sector, with hopes of establishing a fair and mutually beneficial trade agreement," Rasjid noted.
Several companies, including LG, SK Group, Samsung, and Hyundai, have invested in the mining sector in Indonesia, particularly for the development of EVs and batteries.
These investors are seen as helpful in facilitating the downstreaming efforts of the nickel industry, including for cathodes, battery cells, and vehicle production.
Rasjid also called on the US to acknowledge the roles played by Indonesia and the Association of Southeast Asian Nations (ASEAN) as equal partners within the Indo-Pacific Economic Framework (IPEF).
He believes that Indonesia and the ASEAN present an alternative choice to China and is optimistic that the US would grant equal status to IPEF members in comprehensive free trade agreements with the US.
"In the spirit of cooperation, we are currently discussing the opportunity for IPEF. Should the US exclude ASEAN, it would be utterly unfair," Rasjid affirmed.
Pertaining to the EV development industry, Rasjid invited both the US and the EU to place their confidence in Indonesia and other ASEAN countries.
He is confident that Indonesia and ASEAN countries play an important role in the EV supply chain. With this in mind, he believes that the ASEAN region will become a strategic partner to the US, EU, and China in the clean energy sector.
"This step is expected to help strengthen economic and political ties between ASEAN and the global community. Regarding Indonesia, I hope that our industries and economy will benefit from it," Rasjid stated.
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Translator: Tegar Nurfitra
Editor: Anton Santoso
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