Green Economy, Security in Focus as Indonesia, Australia Leaders Meet in Sydney

July 04, 2023, 06.35 PM | Source: Reuters
Green Economy, Security in Focus as Indonesia, Australia Leaders Meet in Sydney

ILUSTRASI. Indonesian President Joko Widodo

JOKOWI - SYDNEY. Indonesian President Joko Widodo said strategic cooperation with Australia on electric vehicle batteries was a priority after talks on Tuesday with Australian Prime Minister Anthony Albanese that focused on green economy and regional security.

Widodo, who is in his second and final term in office, wants to build an electric vehicle battery production industry in Indonesia, which has the world's largest nickel reserves.

The EV industry uses the metal extensively.

Widodo is seeking cooperation from Australia, a major supplier of battery component lithium.

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"Indonesia and Australia must build a more substantive and strategic economic cooperation through the joint production of EV batteries," Widodo told reporters after an annual leaders meeting with Albanese in Sydney.

Widodo told business leaders that the Southeast Asian nation had a target to produce 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 on critical mineral supply chain and worker skills, Indonesia's Ministry of Economic Affairs said.

Albanese said the global move towards electric vehicles was an "incredible opportunity".

Meanwhile, Albanese announced a A$50 million ($33 million) initiative to attract private climate finance to Indonesia, and said Export Finance Australia would establish a $200 million capital financing facility with PT Perusahaan Listrik Negara (PLN) to support Indonesia's energy transition.

Albanese also said Australia would also make visa changes to make business travel easier for visiting Indonesians.

Read Also: Indonesia's June Inflation Eases to Lowest in 14 Months

The Southeast Asian country is Australia's 13th largest trading partner with two-way trade between the nations worth A$23.3 billion last year. Australian investment in Indonesia totalled A$4.3 billion ($2.87 billion) in 2021.

The countries are negotiating a defence treaty, with leaders at the meeting also emphasising the "importance of diplomacy to avoid the risks of miscalculation" in the Indo Pacific region.

"All countries large and small have a collective responsibility to help keep the region peaceful, and Indonesia's contribution to regional security under the president's leadership has been central," Albanese told reporters.

Widodo will travel to Papua New Guinea on Wednesday.

Editor: Yudho Winarto

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