good crabexellent crabdouble-skinned crabs

Trade Deal: US Seeks Indonesian Critical Minerals for Defense, Auto

Jayanty Nada Shofa
December 26, 2025 | 8:20 pm
SHARE
President Prabowo Subianto converses with his American counterpart Donald Trump at the Gaza summit in Sharm el-Sheikh on October 13, 2025. (Photo Courtesy of Presidential Press Bureau)
President Prabowo Subianto converses with his American counterpart Donald Trump at the Gaza summit in Sharm el-Sheikh on October 13, 2025. (Photo Courtesy of Presidential Press Bureau)

Jakarta. Senior minister Airlangga Hartarto said Friday that the US was eyeing Indonesian critical minerals for automotives and military weapons manufacturing, as they recently settled all substantial issues on an upcoming trade deal.

Airlangga had just returned from a Washington trip where he led another round of tariff talks with US trade tsar Jamieson Greer. The two countries have been negotiating a trade agreement set to be signed by President Prabowo Subianto and his American counterpart Donald Trump by end-January. According to Airlangga, Washington had restated its wish to expand its supplies of critical minerals during the discussions. This includes copper, an essential metal in a range of defense systems, ranging from aircraft, submarines, to ammunition.

“The US needs access to critical minerals for automotives, aircraft, rocket engines, and defense manufacturing,” Airlangga told the press in Jakarta.

Airlangga said the sovereign wealth fund Danantara had entered talks with the US side in a business-to-business format. Danantara manages Indonesia’s state-owned enterprises, with MIND ID being the core mining business. The local arm of the US mining giant Freeport is a MIND ID subsidiary. Freeport’s presence in Indonesia dates back to 1967, and the company mines one of the world’s largest copper and gold deposits. The company has also invested in a $3.7 billion copper smelter in East Java’s Gresik.

ADVERTISEMENT

“This shows that critical mineral partnership is nothing new,” Airlangga said, while signaling Washington’s interest in nickel and other rare earths.

The minister mentioned Vale Indonesia, the nickel miner under MIND ID. He also hinted that the partnership could clear the way for Michigan-based auto giant Ford and Elon Musk’s electric carmaker Tesla to buy Indonesian minerals for batteries. Airlangga did not go into the technical details of this critical mineral cooperation.

Nickel is an essential input in aerospace alloys as well as chemicals for lithium-ion batteries.

Under Trump 2.0, the world’s richest country has been beefing up its defense investments. Trump’s One Big Beautiful Bill Act set aside $7.5 billion in critical minerals funding for the defense department. This includes a $2 billion investment to expand the metals stockpile, and some $5 billion to invest in supply chains. This stockpile aims to make sure that the US has access to the necessary defense materials in times of emergencies.

Back in July, Trump described Indonesia as “very strong” in copper, and the trade deal would let his country have “full access” to the mineral.

“Indonesia has some great products. They have very valuable earths and various other materials. One of the things that you know they are known for is very high-quality copper, which we will be using,” Trump said at the time.

The White House also unveiled a framework for Washington's upcoming trade deal that same month. The July document wrote that Indonesia would “remove restrictions on exports to the US of industrial commodities, including critical minerals”. The trade deal negotiations all started when Trump unveiled a tariff campaign against Indonesia and the rest of the world in April.

Tags: Keywords:
SHARE

Related Articles


News 18 hours ago

Don’t Just Sign: Indonesia Must Follow Up on Its International Deals

Ex-Deputy Foreign Minister Dino Patti Djalal says it's better to have just 10 agreements that are fully implemented.
Business Jun 19, 2026 | 8:00 am

Foreign Inflows, Danantara Demand Challenge ‘Sell Indonesia’ Narrative 

Indonesia markets rebound as JCI recovers, foreign inflows return, and optimism grows that “Sell Indonesia” sentiment is fading.
News Jun 18, 2026 | 8:17 pm

Prabowo Orders Expansion of Papua Agriculture Programs Backed by Record Funding

Prabowo orders continued expansion of Papua farm programs backed by Rp 5.5 trillion in funding.
Business Jun 15, 2026 | 2:14 pm

Rosan Says Investors Remain Confident in Indonesia’s Economy

Indonesia booked $28.1 billion in Q1 investment, with foreign capital contributing Rp 250 trillion.
News Jun 12, 2026 | 7:47 pm

Prabowo to Host German President Steinmeier on Monday

Not much is known about what sort of deals Prabowo-Steinmeier talks will roll out.
News Jun 12, 2026 | 5:04 pm

Thousands of Indonesian Students Rally Against Govt Policies

Thousands of Indonesian students rallied in Jakarta, criticizing rising living costs, government spending, and controversial state programs.
News Jun 12, 2026 | 1:57 am

Trump Calls Off Latest Threats to Strike Iran, Citing Progress in Negotiations

Trump had threatened further escalation earlier Thursday, posting on social media that the US would hit Iran “VERY HARD TONIGHT”.
Business Jun 11, 2026 | 9:12 pm

Kalla Group Pledges $3.9B for Energy After Prabowo Talks

Kalla Group says it is ready to invest up to Rp 70 trillion in renewable and gas power projects.
Business Jun 11, 2026 | 9:40 am

BI Sees Stronger Rupiah in 2027 as DHE, Danantara Boost Forex Inflows

Bank Indonesia expects the rupiah to strengthen to Rp 16,800-17,500 per dollar in 2027 on stronger fundamentals and capital inflows.
News Jun 10, 2026 | 6:36 pm

Prabowo Pledges Cheaper Generic Drugs Within a Year

Prabowo pledged cheaper generic medicines within a year as Indonesia accelerates hospital and healthcare upgrades nationwide.

The Latest


News 11 hours ago

Dear Mr. President, Don’t Skip ASEAN Summits

Despite calls for Prabowo to stay home, the Indonesian leader still needs to attend ASEAN summits.
Business 12 hours ago

PLN Rushes Coal Supplies After Power Outages Hit Java

PLN is rushing to secure coal supplies after shortages triggered rolling blackouts across Java, disrupting businesses and daily life.
Business 16 hours ago

Japan-Backed ADB Invests in Indonesia’s Human Capital

As many as 399 Indonesian awardees have joined the ADB-Japan Scholarship Program from 1988 to 2024.
Business 16 hours ago

Indonesian Stocks Rise Despite Foreign Outflows as MSCI Review Looms

Indonesia's JCI rose 2.8% as easing geopolitical tensions offset foreign outflows, MSCI concerns and rupiah pressures.
News 17 hours ago

World Cup 2026: Paraguay Holds Off Turkey With 10 Men to Keep Knockout Hopes Alive

Matias Galarza scored after 65 seconds as 10-man Paraguay beat Turkey 1-0, eliminating the Turks and securing first place for the US.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED