US President Joe Biden and Indonesian President Joko Widodo have signed a comprehensive partnership in areas such as green energy, critical minerals, and semiconductors. The collaboration aims to diversify the global semiconductor ecosystem, making the global value chain more resilient, secure, and sustainable. The US hopes to promote industry exchange between the two nations through corporate representatives from US semiconductor companies. The collaboration is based on the International Technology Security and Innovation (ITSI) Fund, created by the CHIPS Act of 2022. The ITSI Fund provides the government with $500 million ($100 million per year over five years) to promote the development and adoption of secure telecommunications networks and ensure semiconductor supply chain security and diversification through new programs and initiatives with US allies and partners.
The parties also announced an MOU on sustainable energy and mineral development, advancing technical cooperation on enabling environments and regulatory frameworks to increase renewable energy resources uptake, enhance grid resiliency and security, and improve technologies for responsible mining and minerals processing practices. This opens the door for a potential critical minerals trade agreement, giving Indonesian nickel access to US incentives and subsidies. The US-Indonesia Trade and Investment Framework Agreement (TIFA) will be engaged and progressed, and supply chain dependencies and vulnerabilities will be reduced.
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