A new trade pact between the United States and Indonesia binds the Southeast Asian nation’s resource wealth and energy future more closely to Washington’s strategic needs. This is a notable shift in policy for Jakarta, which has deepened ties with Beijing in recent years, just as competition for global resources intensifies between China and the U.
Military report says 'one in a million' live fire malfunction rained shrapnel on California highwayWhat's in the voting bill that Republicans are pushing to the Senate floorWADA delays decision over potential ban of Trump from major sporting events until after World CupTrump's tax law changes may increase the number of donors, but reduce donations to nonprofitsOtters enjoy a snow day in Maryland during winter stormStair climbers love their exercise, even when security guards act like they're up to somethingAfter an Iranian drone strike, a photographer captures this quiet human momentMezcal's popularity is booming in the US.
That comes with a growing environmental cost in MexicoJudge blocks US government from slimming down vaccine recommendationsE. coli linked to cheddar cheese made with raw milk sickens 7 in the USUS ice cream makers say they'll stop using artificial dyes by 2028Young people are turning to old-school hobbies to get off their phonesVatican appeals court declares mistrial in the 'trial of the century' against a cardinalRenuncia asesor antiterrorismo de Trump, dice que Irán"no presentaba una amenaza inminente"Iran launches barrage of missiles after Israel kills 2 of its top officials That comes with a growing environmental cost in MexicoJudge blocks US government from slimming down vaccine recommendationsE. coli linked to cheddar cheese made with raw milk sickens 7 in the USUS ice cream makers say they'll stop using artificial dyes by 2028Young people are turning to old-school hobbies to get off their phonesVatican appeals court declares mistrial in the 'trial of the century' against a cardinalRenuncia asesor antiterrorismo de Trump, dice que Irán"no presentaba una amenaza inminente"ClimateFILE- Barges fully loaded with coal are anchored on Mahakam river in Samarinda, East Kalimantan, Indonesia, on Dec. 19, 2022. Indonesia Weda Bay Industrial Park operates in Central Halmahera, North Maluku province, Indonesia, on June 8, 2024. Motorists queue up to fill up their tank at a a petrol station in Medan, North Sumatra, Indonesia, on March 3, 2026. A worker writes batch numbers on a bag of nickel matte at a processing plant in Sorowako, South Sulawesi, Indonesia, on Sept. 12, 2023. FILE- Barges fully loaded with coal are anchored on Mahakam river in Samarinda, East Kalimantan, Indonesia, on Dec. 19, 2022. FILE- Barges fully loaded with coal are anchored on Mahakam river in Samarinda, East Kalimantan, Indonesia, on Dec. 19, 2022. Indonesia Weda Bay Industrial Park operates in Central Halmahera, North Maluku province, Indonesia, on June 8, 2024. Indonesia Weda Bay Industrial Park operates in Central Halmahera, North Maluku province, Indonesia, on June 8, 2024. Motorists queue up to fill up their tank at a a petrol station in Medan, North Sumatra, Indonesia, on March 3, 2026. Motorists queue up to fill up their tank at a a petrol station in Medan, North Sumatra, Indonesia, on March 3, 2026. A worker writes batch numbers on a bag of nickel matte at a processing plant in Sorowako, South Sulawesi, Indonesia, on Sept. 12, 2023. A worker writes batch numbers on a bag of nickel matte at a processing plant in Sorowako, South Sulawesi, Indonesia, on Sept. 12, 2023. between Indonesia and the United States has recast their economic ties, binding Jakarta’s resource wealth and energy future more closely to Washington’s strategic needs. Indonesia agreed to widen access for U.S. investors in critical minerals, boost its purchases of U.S. crude and liquefied petroleum gas, back the development of an American coal export corridor and cooperate on small modular nuclear reactors. In turn, the U.S. trimmed a threatened 32% tariff on Indonesian goods to 19% and granted broader access to the American market, including a zero-tariff entry policy for major products such as palm oil, coffee, cocoa, spices and rubber.President Donald Trump’s tariffs may impact how it is implemented. The deal fits with longer term U.S. efforts toMeanwhile other export-reliant Southeast Asian economies negotiating with the United States, including Vietnam, are closely watching the Indonesia–U. S. trade deal for clues about the tariff levels and concessions Washington may demand across the region.the conflicting aims of the U.S. and China, a key source of foreign investment and market for Indonesian coal and nickel, analysts say.Haryo Limanseto of Indonesia’s Coordinating Ministry for Economic Affairs, said the deal’s energy provisions “balance foreign trade and meet domestic energy needs.” “The leadership of Indonesia is trying to tread a fine line between the West and China,” said Putra Adhiguna of the Jakarta-based Energy Shift Institute, adding that Chinese influence is “inescapable” since it is Indonesia’s largest trading partner.Indonesia has pledged to promote U.S. investment across its mineral industry, from exploration and mining to refining, transport and export. In some cases, American investors will receive treatment “no less favorable” than domestic firms.to the U.S. will be relaxed to expedite development of Indonesia’s rare earths and critical minerals sector with U.S. partners, promising “greater certainty” for companies involved in extraction to help boost production, the agreement says.have altered Indonesia’s mining sector in the past six months and the trade deal’s new restrictions on existing foreign-owned entities in Indonesia will curb excess output from processing plants. Foreign businesses must follow the same tax, environmental, labor and quota rules as other companies. Indonesia’s critical mineral processing sector is currently dominated by China, which has firms operating or financing multiple nickel smelters and industrial parks. “Indonesia is absolutely central to this competition because it combines resource endowment with political ambition,” said Kevin Zongzhe Li, with the Center for China Analysis within the Asia Society Policy Institute, a New York-based think tank. Competition over critical minerals is heating up and the agreement “opens the door for U.S. firms to have a real shot” at “modestly leveling a sector where Chinese industries established first mover advantage,” he said.Indonesia has agreed to cut red tape so that its companies can more easily purchase U.S. energy products. It plans to buy $15 billion worth of American energy commodities over an unspecified period, mainly fossil fuels such as liquefied petroleum gas, crude oil and gasoline.emerging as a way to narrow trade gaps. It’s unclear if the turmoil in oil trading due to the war with Iran might impact that effort., will also invest in developing an export corridor from the U.S. West Coast to help make American coal more competitive in global markets, the agreement says. Indonesia also pledged to work with the U.S. and Japan to deploy small modular nuclear reactors, starting with a potential project in West Kalimantan., a multi-billion deal where the U.S. and other wealthy nations pledged support for reducing coal use and expanding clean energy. The Despite the U.S. withdrawal, Indonesian officials said the $21.4 billion partnership will continue. As of January, at least $3.4 billion, around 15%, of the funds had been received, according to Airlangga Hartarto, Indonesia’s minister for economic affairs. Adhiguna said the deal’s biggest impact may be political, with Jakarta emulating the U.S. emphasis on fossil fuel use. “There is the risk that the political leadership of Indonesia is going to fall back into that hole,” Adhiguna said.Over the past five years, tropical, sunny Indonesia has installed less than 1 gigawatt of solar energy — compared with roughly. The International Energy Agency found that fossil fuels, like coal, oil and natural gas, made up nearly 78% of Indonesia’s energy mix in 2023. Indonesia should prioritize building 100 GW of solar and storage capacity and expand interconnection grids to enable renewable energy sharing, said Dinita Setyawati, with the United Kingdom-registered energy think tank Ember.on the durability of his trade strategy. The agreement requires ratification by Indonesia’s parliament before it can take effect. That adds another “layer of uncertainty,” said Meha Sitepu, with the Washington-based strategic advisory firm The Asia Group. Some provisions of the agreement are drawing criticism, including those that are seen as diluting Indonesia’s halal certification requirements in the mostly Muslim country of nearly 288 million, Southeast Asia’s most populous nation. “Parliamentary approval could be an uphill battle and added uncertainty from the U.S. side may complicate things further,” Sitepu said.The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find AP’sGhosal covers the intersection of business and climate change in southeast Asia for The Associated Press. He is based out of Hanoi in Vietnam.
Donald Trump International Trade Metals And Mining Energy Industry Indonesia Government General News International News Asia Pacific Tariffs And Global Trade Climate And Environment Business Washington News Kevin Zongzhe Li World News Renewable Energy Iran War Climate World News Washington News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New York transit officials sue Trump administration to restore subway project fundingThe transit agency in charge of New York City’s subway system has sued the Trump administration.
Read more »
New York transit officials sue Trump administration to restore subway project fundingNEW YORK (AP) — The transit agency in charge of New York City's subway system sued the Trump administration Tuesday, accusing it of breach of contract for
Read more »
New York transit officials sue Trump administration to restore subway project fundingThe transit agency in charge of New York City’s subway system has sued the Trump administration.
Read more »
Trump, Rubio call for new Cuban leaders as latest blackout underscores deepening economicPresident Donald Trump pledged imminent action against Cuba’s socialist government as his moves against the island bring the country deeper into crisis.
Read more »
I Know Why Trump’s Presidency Is Doomed: AuthorThe second Trump administration is on the ropes, according to Trump’s biographer.
Read more »
Donald Trump’s Approval Rating With Men Hits New Low: PollShifts in approval and disapproval ratings could signal broader erosion and complicate the Republican Party's midterm strategies.
Read more »