JAKARTA- The US has approached Indonesia about joining a multinational partnership to boost the Southeast Asian nation’s environmental standards as the two countries discuss a critical minerals deal, a senior US official said on Monday.
US Under Secretary of State for Economic Growth, Energy, and the Environment Jose Fernandez spoke to the Indonesian government about the Mineral Security Partnership, a collaboration of 14 countries and the European Union, during his visit to Jakarta this week.
The MSP, whose objective is to accelerate development of sustainable critical minerals supply chains and facilitate financial and diplomatic support, would be an opportunity to improve environmental standards and governance in Indonesia’s mineral sector, he told a press conference in Jakarta.
Indonesia, which has rich reserves of minerals such as nickel, copper and bauxite, is keen to promote itself as a production hub for batteries and electric vehicles.
The nation has massively expanded its nickel processing industry since it banned exports of unprocessed ore in 2020, but environmentalists have blamed the industry for deforestation, water and air pollution caused by smelters.
“I believe this will lead to more investment in Indonesia, and not just any investment, but also investment that benefits communities, that upholds labor laws, that upholds environmental laws,” Fernandez said.
