6-7-2023 (JAKARTA) Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, has highlighted the potential for collaboration between Indonesia and Australia as major players in the electric vehicle (EV) battery industry. Hartarto witnessed the signing of an action plan for the implementation of a memorandum of understanding (MoU) between the government of Western Australia and the Indonesian Chamber of Commerce and Industry (KADIN) on Tuesday.
According to a statement from Hartarto’s ministry, the signing of the action plan is crucial to capitalize on opportunities and bring together all relevant parties in the essential mineral sector, including battery materials. The plan aims to establish a more concrete cooperation framework, with the involvement of financial supporters, to realize this goal.
KADIN Chairperson, Arsjad Rasjid, and Premier of Western Australia, Roger Cook, signed the action plan in Sydney, Australia. The plan seeks to outline the specifics of implementing the MoU on cooperation for essential mineral resources, which was signed by the two officials in Perth on February 21, 2023.
George Marantika, Chairperson of the Indonesia-Australia Business Council (IABC), stated that the action plan is a follow-up to the commitment made during the G20 summit in November 2022. This collaboration falls under the Indonesia-Australia Economic Partnership Agreement (IA-CEPA), which came into effect on July 5, 2020.
The action plan focuses on various aspects, including the supply chain, Environmental, Social, and Governance (ESG) considerations, the development of a skilled workforce, and the establishment of sustainable and beneficial essential mineral and battery industries in both countries.
Indonesian Ambassador to Australia, Siswo Pramono, highlighted that a partnership between Indonesia and Western Australia would unlock new opportunities in the essential mineral sector. The Western Australia state possesses abundant mineral resources required for battery production in EVs.
“Australia will supply lithium, while Indonesia will supply nickel, which are the two primary commodities in EV production,” stated Pramono. The two countries can make significant contributions to the global supply chain by meeting the growing demand for batteries and minerals. Pramono also noted that Indonesia is projected to become a center for nickel production, given its ample nickel resources and workforce.
