Indonesia's parliament codified into law its decision to join the Chinese-led Regional Comprehensive Economic Partnership (RCEP) and a free trade agreement (FTA) with South Korea, Reuters reported Aug. 30. The FTA with South Korea is expected to boost trade by up to $30 billion per year. Why It Matters: Indonesia will use its strict export controls on key battery and semiconductor materials to leverage beneficial bilateral investment and trade agreements. This means future FTAs with Western countries are highly likely, as they are seeking to establish robust supply chains for their electric vehicle industries. Additionally, Indonesia's participation in RCEP will give the country's exports better access to the markets of richer nations like Australia and New Zealand, which means Indonesia's non-electric vehicle battery-related industries will also grow. However, RCEP will give Chinese companies increased access to the Indonesian market, which will create more competition with Western interests.