7-7-2023 (JAKARTA) President Joko Widodo of Indonesia seeks to solidify a stronger partnership with Australia during his visit this week, with a particular focus on securing Australia’s support for Indonesia’s electric vehicle (EV) ambitions. This visit presents an opportunity to establish a more stable foundation for the bilateral relationship between the two nations, beyond past controversies.
President Widodo, popularly known as Jokowi, has just over a year left in office and is eager to leave a lasting legacy. Last month, he unveiled the final draft of the 2025-2045 National Long-Term Development Plan, which outlines an ambitious roadmap for transforming the Indonesian economy. The plan aims not only to elevate Indonesia to the status of a high-income country, but also prioritizes social equality, human capital development, and environmental sustainability, with the ultimate goal of eradicating poverty.
Jokowi’s vision for Indonesia is to position the country as a respected and influential global actor, committed to addressing global challenges. To achieve this, his government aims to foster an innovative workforce and promote entrepreneurship, while ensuring a cleaner and more resilient environment for future generations. The focus on electric vehicles exemplifies this vision and is the primary objective of Jokowi’s visit to Australia, particularly in securing the necessary raw materials for successful battery production. However, the scope of this ambition extends beyond EVs.
Throughout his tenure, President Widodo has been actively engaged with citizens, frequently visiting remote areas and listening to their concerns. His policy agenda has prioritized infrastructure development, economic reform, healthcare, social welfare, digitalization, and sustainable growth. Central to this agenda is the government’s “downstreaming” policy, which aims to maximize the value of Indonesia’s abundant natural resources by transitioning from raw material exports to processed and finished goods production. This shift is crucial for unlocking economic value, creating jobs, and fostering innovation.
In the context of electric vehicles, Jokowi’s administration has sought partnerships with other countries to leverage Indonesia’s advantage in nickel production, a vital component of EV batteries. However, Indonesia has limited lithium resources, another essential element in battery production, which Australia possesses in abundance. President Widodo has expressed Indonesia’s interest in obtaining lithium from Australia, and the response from Australian Prime Minister Anthony Albanese has been encouraging, signaling a promising start to bilateral collaboration in building a comprehensive EV ecosystem that encompasses various aspects of production.
The collaboration between Australia and Indonesia extends beyond electric vehicles. There is significant potential for cooperation in sectors such as mining, energy, education, healthcare, e-commerce, and fintech. The opportunities for joint ventures, investment, and knowledge sharing are vast. The development of an EV ecosystem should be seen as just the initial step towards a broader and more comprehensive partnership between the two nations.
President Widodo’s visit to Australia marks a pivotal moment in strengthening the ties between the two countries. By working together on responsible and sustainable resource extraction, Australia and Indonesia can establish a stable supply chain for EV production, attract investments, and create jobs, leveraging Australia’s advanced manufacturing expertise and Indonesia’s established automotive manufacturing industry. Discussions with Indonesian business leaders demonstrate a strong desire to forge partnerships with their Australian counterparts, indicating a shared commitment to collaborative growth and prosperity.
As President Joko Widodo seeks to cement his legacy, the visit to Australia holds great significance for both nations, setting the stage for a fruitful and mutually beneficial partnership that extends far beyond electric vehicles.
