Indonesian Coordinating Minister of Maritime Affairs and Investment Luhut Pandjaitan (Photo: Reuters) Jakarta (VNA) – Indonesian Coordinating Minister of Maritime Affairs and Investment Luhut Pandjaitan said on April 10 that Indonesia will propose a free trade agreement for some minerals shipped to the US so that companies in the electric vehicle (EV) battery supply chain operating in the country can benefit from the US tax credits.
The US has issued a new guidance for EV tax credits under the Inflation Reduction Act (IRA), requiring a certain value of battery components to be produced or assembled in North America or a free trade partner.
Indonesia does not have a free trade agreement with the US, but its nickel products have increasingly become important in the supply chain.
The Southeast Asian country has been trying to leverage its nickel reserves, the world's biggest, to attract investment from battery and EV makers, including US companies such as Tesla and Ford.
The minister told a news conference that Jakarta will propose a limited free trade agreement (FTA) with Washington./.
