Indonesian President Joko Widodo has emphasized the importance of strategic cooperation with Australia in the field of electric vehicle (EV) batteries. The two leaders discussed this topic during an annual meeting held in Sydney, where they also addressed matters related to the green economy and regional security.

President Widodo, who is serving his final term in office, aims to develop an EV battery production industry in Indonesia, given its abundant nickel reserves, which are extensively used in the EV industry. As a major supplier of lithium, a key component of batteries, Indonesia seeks cooperation from Australia in this venture.

During a press conference after their meeting, President Widodo stated, “Indonesia and Australia must build a more substantive and strategic economic cooperation through the joint production of EV batteries.” He further highlighted Indonesia’s potential as an investment destination and revealed the nation’s ambitious goals of producing 1 million electric cars and 3.2 million electric motorbikes by 2035.

Indonesia’s Chamber of Commerce and Industry (KADIN) signed an “action plan” with the state of Western Australia to enhance critical mineral supply chains and develop worker skills. This move reflects Indonesia’s commitment to strengthening economic ties with Australia.

Australian Prime Minister Anthony Albanese also announced an initiative worth A$50 million ($33 million) aimed at attracting private climate finance to Indonesia. Additionally, Export Finance Australia plans to establish a $200 million capital financing facility with PT Perusahaan Listrik Negara (PLN) to support Indonesia’s transition towards renewable energy.

Trade and Investment Relations

Indonesia is Australia’s 13th largest trading partner, with Australian investments in Indonesia reaching A$4.3 billion ($2.87 billion) in 2021. Coal remains the primary export between the two countries, according to government data. The bilateral trade volume stood at A$23.3 billion, as mentioned by Prime Minister Albanese.

Taronga Zoo Meeting and Visa Changes

The leaders’ meeting took place at Taronga Zoo, a harbourside location known for its involvement in a regional conservation program for Sumatran Tigers. As a gesture of strengthening business ties, Australia plans to implement visa changes to facilitate easier business travel for visiting Indonesians. Foreign Minister Penny Wong mentioned these changes and emphasized Australia’s commitment to transparency regarding the AUKUS alliance.

AUKUS and Nuclear Material Proliferation Concerns

Foreign Minister Wong addressed Indonesia’s concerns regarding the AUKUS alliance, assuring that Australia will maintain transparency while discussing its plans to acquire nuclear-powered submarines over the next decade in collaboration with the United States and Britain. She emphasized both countries’ commitment to a peaceful and stable region, ensuring that nuclear material is not allowed to proliferate.

Conclusion

President Joko Widodo’s visit to Australia marked an important step towards enhancing strategic cooperation between Indonesia and Australia in the field of

electric vehicle batteries. With Indonesia’s vast nickel reserves and Australia’s expertise in lithium supply, the two nations aim to build a thriving EV battery production industry. Additionally, efforts to attract private climate finance and support Indonesia’s energy transition demonstrate the commitment towards sustainable development.

Strengthening trade and investment relations further solidifies the economic cooperation between the two countries. The leaders’ meeting at Taronga Zoo and the proposed visa changes highlight the importance of fostering closer business ties. The AUKUS alliance remains a topic of discussion, with Australia emphasizing transparency and regional stability while addressing Indonesia’s concerns regarding nuclear material proliferation