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RI, Australia fast-track cooperation to develop critical minerals,EV battery supply chains
The 2023-25 Action Plan aims to deliver near-term economic benefits for Indonesia and Western Australia by building value-added, resilient and sustainable battery and mineral industries in both countries.
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(Photos courtesy of Coordinating Ministry for Economic affairs Republic of Indonesia)
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s part of President Joko “Jokowi” Widodo’s visit to Australia for the annual leaders’ meeting with Prime Minister Anthony Albanese, Coordinating Economic Minister Airlangga Hartarto witnessed the signing of the Action Plan for the implementation of a Memorandum of Understanding (MoU) between the State Government of Western Australia and the Indonesian Chamber of Commerce and Industry (Kadin) in Sydney, Australia, on Tuesday. The signing was carried out by Kadin chairman Arsjad Rasjid and the Premier of Western Australia, Hon Roger Cook MLA.
The 2023-25 Action Plan aims to deliver near-term economic benefits for Indonesia and Western Australia by building value-added, resilient and sustainable battery and mineral industries in both countries.
“This is a special partnership for scaling up concrete cooperation for making sure Indonesian and Australian industries are world-class and at the heart of the global energy transition," said minister Airlangga.
The cooperation agreement focuses on empowering communities and people by strengthening industry capabilities and investing in skills in both regions, as well as accelerating efforts to meet ESG requirements. Jakarta and Perth plan to hold annual high-level dialogues and business forums to ensure investors and businesses are getting the necessary support from policymakers to unlock investment.
“The partnership between Indonesia and Western Australia can open up great opportunities in the critical minerals sector, considering that Western Australia has abundant mineral reserves to produce electric vehicle [EV] batteries. Australia will become a lithium supplier and Indonesia will become a nickel supplier, both of which are the main components in EV production," said Indonesian Ambassador to Canberra Siswo Pramono.
The Action Plan will also deliver a strategic analysis outlining the opportunities and challenges for upstream and downstream activities to benefit from growing international demand, so Indonesia and Western Australia can optimize their roles as major producers for supplying and strengthening global value chains for the green economy.
Indonesia is projected to become a manufacturing powerhouse (processing center) with major nickel reserves, an abundant skilled workforce and easy access to raw materials such as lithium supported by standards and expertise from Australia.
The 2023-25 Action Plan launch will be held in September 2023 in Jakarta as part of the first Annual High-Level Dialogue. Perth will host the following year's meeting. This is an important development as part of implementing the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), which entered into force on Wednesday.
The Action Plan details the implementation of an MoU that was signed on Feb. 21 in Perth by the Kadin chair Arsjad Rasjid and Deputy Premier Hon Roger Cook MLA.
"The Action Plan is a follow-up to the commitments made at the B20/G20 meeting last November 2022," said Indonesia-Australia Business Council (IABC) chair George Marantika.
At the meeting, minister Airlangga was accompanied by Coordinating Economic Ministry secretary Susiwijono and deputy for international economic cooperation Edi Pambudi. The signing of the Action Plan was carried out as part of a program to strengthen linkages between the businesses of the two countries. Present were the Indonesian Ambassador in Canberra, Siswo Pramono; the Indonesian Consul General in Perth, Listiana Operananta; Chair of the Indonesia-Australia Business Council (IABC), George Iwan Marantika; as well as representatives of the governments of Indonesia and Australia; and Indonesian business actors who are members of Kadin.
This article was published in collaboration with Coordinating Ministry for Economic Affairs Republic of Indonesia
