TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsGovt plans to ‘counterattack’ US, EU mineral policies
Investment Minister Bahlil Lahadalia told reporters on Friday that Indonesia planned to require 60 to 70 percent of mineral output to be processed in-country before being exported.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A worker processes nickel ore at a smelter in Sorowako, South Sulawesi, on Aug. 1, 2019. (Shutterstock/Kaisarmuda)
T
he government has said it will seek to counter policies from the United States and European Union meant to encourage the domestic processing of minerals crucial for the electric vehicle (EV) industry, which Jakarta says could threaten the development of its own downstream metals industry.
Investment Minister Bahlil Lahadalia told reporters on Friday that Indonesia planned to require 60 to 70 percent of mineral output to be processed in-country before being exported. Increased export taxes would be applied to shipments below that threshold.
In the EV supply chain, the government aims to export nickel only if it has been processed into cathode, an intermediate product a few steps from becoming part of a battery, Bahlil said, adding that the final manufacturing steps could be done at the export destination.
“Under such a situation, Indonesia will make a counterattack,” Bahlil said of the US and EU’s mineral policies.
“We can’t be tricked. It must be fair,” he added.
Read also: China may be hindrance in RI getting FTA with US on critical minerals
Bahlil’s statements were in response to the Inflation Reduction Act (IRA) passed by the US and the Critical Raw Materials Act (CRM) proposed by the EU, which both aim to move the processing of critical minerals and the manufacture of EVs within their borders.
