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Ministers fail to reach consensus on IPEF, need more talks on trade
Coordinating Economic Minister Airlangga Hartarto said on Wednesday that discussions at an international summit in the US had not produced “the targeted resolution” on trade due to disagreement over several issues, including critical minerals, a key topic for Jakarta.
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Coordinating Economic Minister Airlangga Hartanto signs an agreement on supply chains at the Third Indo-Pacific Economic Framework Ministerial Meeting (IPEF-MM) along with economic ministers from 13 other IPEF countries in San Francisco, the United States, on Nov. 14, 2023. (Coordinating Ministry for Economic Affairs of the Republic of Indonesia/-)
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ultilateral talks in the United States on the Indo-Pacific Economic Framework (IPEF) have failed to produce an agreement on trade, which experts see as a setback for Indonesia’s quest to gain greater access to the US market for products including critical minerals.
Coordinating Economic Minister Airlangga Hartarto, who attended the ministerial-level negotiations, said in a statement on Wednesday that the discussions on trade as the IPEF’s first pillar had not “reached the targeted resolution” due to several issues requiring further discussions.
This included discussions on green subsidies under the US Inflation Reduction Act (IRA), a controversial topic already addressed in IPEF meetings held in May.
The latest round of talks took place in San Francisco, California, at the Third Indo-Pacific Economic Framework Ministerial Meeting (IPEF-MM), coinciding with the Asia-Pacific Economic Cooperation (APEC) leaders' week held in the same city from Nov. 11 to 17.
President Joko “Jokowi” Widodo has consistently emphasized the importance of strengthening critical mineral supply chains, as highlighted in his bilateral meeting with US President Joe Biden, as per the minister’s statement.
Despite the hiccup, the government remained adamant about “moving the agreement forward,” the ministry said.
An official from the Coordinating Economic Ministry told The Jakarta Post on Tuesday that Indonesia had “reaped benefits” from the agreed-upon IPEF pillars, even though a comprehensive agreement had not been finalized.
