Notice

Memorandum of Understanding between the Ministry of Energy and Mineral Resources of Indonesia and the Foreign, Commonwealth, and Development Office of the UK on a Strategic Partnership on Critical Minerals

Published 29 November 2024

The Ministry of Energy and Mineral Resources (“MEMR”) of the Republic of Indonesia and The Foreign, Commonwealth and Development Office (“FCDO”) of the United Kingdom of Great Britain and Northern Ireland (hereinafter referred to individually as a “Participant” and collectively as “the Participants”)

Recognising that critical minerals have particularly strategic importance in the global transition to net-zero and, therefore, ensuring effective cooperation on resilient, sustainable, and transparent critical minerals supply chains is essential;

Considering the mutual interest of the Participants to cooperate in the field of sustainable mineral resources and mining, processing, manufacturing, and recycling of critical minerals based on the principles of equality and mutual understanding;  

Building on progress made under the Joint Statement on Closer Cooperation between the Republic of Indonesia and the United Kingdom launched on 11th April 2012, and Indonesia-UK Partnership Roadmap 2022-2024 (“the Partnership”) to enhance cooperation between both countries;

Acknowledging existing cooperation in a number of related areas, including renewable energy, trade and investment, and environment;

Have reached the following understanding with regard to the Partnership to deepen cooperation in the field of critical minerals:

1. Objectives

The intended objectives of this Memorandum of Understanding (MoU) are to establish a cooperation framework between the Participants and facilitate the sharing of technical knowledge, advice, skills, and expertise on sustainable critical minerals, and to mitigate the potential of environmental and social risks linked to mining activities.

2. Areas and Forms of Cooperation

2.1. To achieve the objective of this MoU, the Participants will cooperate in multiple areas, including mineral resources, geological works, mining, processing, manufacturing, recycling, modern mining technologies, post-mining, environmental rehabilitation, and other areas as jointly decided by the Participants.

2.2. The cooperation on the areas mentioned above may be conducted in the following forms:

a) Critical minerals policy: Coordination of and dialogue on critical minerals policy, including information exchange on supply chain resilience and security, regulation and minerals criticality, and support for developing a policy framework that promotes ESG practices in critical minerals mining and processing.

b) Commercial and institutional collaboration: Encouraging collaboration between business and government entities of both Participants to promote, build and invest in green and sustainable critical mineral supply chains, including developing sustainable midstream and downstream integrated processing alongside manufacturing capabilities and recycling to support local prosperity.

c) Expertise sharing: Joint capacity building, study and expertise-sharing on the critical minerals sector, including mineral resources, geological works, mining, processing, manufacturing, recycling, and new mining technologies, including but not limited to, digitalization and the use of Artificial Intelligence (AI), for clean and sustainable mining and processing, post-mining, waste storage, and disposal (tailings).

d) Other areas of cooperation to be jointly decided by the Participants, but with the view to maintain focus on the development of clean energy solutions and sustainable practices in the critical minerals sector.

2.3. Under this MoU, the Participants intend to focus primarily on nickel, cobalt, lithium, graphite and rare earths in both raw and processed forms, with the flexibility to consider prioritise co-operation on other critical minerals as deemed relevant by the Participants.

3. Implementation

The Participants may jointly determine specific areas of cooperation and their related activities. The detailed provisions relating to forms and methods, financial considerations, as well as the condition of the intended area of cooperation will be set forth in a separate arrangement between the Participants.

4. Working Group

4.1. For the purpose of discussion and implementation of various issues pertaining to this MoU, the Participants will set up a Joint Working Group. The Joint Working Group will elaborate on cooperation under this MoU.

4.2. The Joint Working Group, consisting of the representatives of the Participants, may meet annually on mutually determined dates by the Participants, alternately in Indonesia and the UK, or through a virtual meeting format. Each Participant will cover its expenses relating to participation in the meetings of a Joint Working Group.

4.3. The Participant may invite scientific institutions, research centres, universities, vocational training institutions, public and private companies, or any other entities to participate in the joint meetings and other activities as and when considered essential.

4.4. A working-level meeting will take place between the Participants on a quarterly basis in support of this annual Joint Working Group.

5. Executing Agencies

Executing Agencies for this cooperation will be:

1. For the Ministry of Energy and Mineral Resources (MEMR) of the Republic of Indonesia: Directorate General for Mineral and Coal;
2. For the Foreign, Commonwealth and Development Office (FCDO) of the United Kingdom of Great Britain and Northern Ireland:  British Embassy Jakarta

6. Intellectual Property

6.1. Any intellectual property owned by each Participant brought and used for the implementation of this MoU will remain the property of each Participant, and that Participant is responsible for any claim made by any third party regarding the   ownership and validity of such intellectual property.

6.2. Intellectual property resulting from the implementation of this MoU will be co-owned by the Participants. The Participants will jointly decide on separate arrangements to regulate the utilization of intellectual property in accordance with prevailing laws, rules, and regulations in their respective countries.

7. Confidentiality

7.1. Each Participant will take appropriate measures to protect the confidentiality of non-public information, including documents, material and equipment, received directly or indirectly from the other Participant during the period of implementation of this MoU or any other arrangements made pursuant to this MoU.

7.2. Unless required by applicable laws and regulations in their respective countries, the Participants will not disclose non-public information, including documents, material and equipment received pursuant to this MoU to any third party. If a Participant wishes to disclose such information to a third party during the period of implementation of this MoU or after the expiry of this MoU, they will obtain prior written consent of the other Participant.

8. Amendment

Any amendment or revision to the text of this MoU will be approved in writing by mutual decision of the Participants. Such amendment or revision will come into effect upon its signing or on such date as may be jointly determined by the Participants.

9. Legal Status

9.1. This MoU is not intended to create any legally binding obligation on either Participant;

9.2. Nothing in this MoU represents a commitment of financing on the part of either Participant. Furthermore, this MoU does not intend to represent any commitment from either Participant to give preferential treatment to the other Participant in any matter contemplated herein or otherwise;

9.3. Nothing in this MoU is intended to, or will be deemed to, establish either Participant as an agent of the other or authorise either of the Participants to make or enter into any commitments for or on behalf of the other Participant;

10. Settlement of Differences

Any differences arising from the application or interpretation of this MoU will be settled amicably by mutual consultation or negotiation between the Participants through diplomatic channels.

11. Duration and Termination

11.1. This MoU will come into effect on the date of its signature.

11.2. This MoU will remain in effect for a period of 5 (five) years and may be extended for another period of 3 (three) years by prior written consent from both Participants.

11.3. Either Participant may terminate this MoU at any time by giving written notification to the other Participant regarding its intention to terminate this MoU at least 90 (ninety) days prior to the intended date of termination.

11.4. Termination of this MoU will not affect the validity and duration of any ongoing programs or projects undertaken under this MoU until the completion of such programs or projects unless the Participants jointly decide otherwise.

Signed in duplicate, at Jakarta, on 18 September 2024, each in English and Indonesian languages, both texts having equal validity. In case of any divergences in interpretation, the English text will prevail.

For the Ministry of Energy and Mineral Resources of the Republic of Indonesia:

Bahlil Lahadalia, Minister of Energy and Mineral Resources

For the Foreign, Commonwealth, and Development Office of the United Kingdom of Great Britain and Northern Ireland:

The Rt Hon Anneliese Dodds MP, Minister for Development