Green economy and security in focus at the meeting of the heads of state and government of Indonesia and Australia in Sydney

[1/3]Indonesia’s President Joko Widodo speaks about the planned new capital Nusantara at Ecosperity Week in Singapore on June 7, 2023. REUTERS/Edgar Su/File Photo

• Strategic cooperation with Australia on electric vehicle priority – says Widodo
• Australia aims to make business travel easier for Indonesians
• Australia and Indonesia are also negotiating a defense agreement

SYDNEY, July 4 (Reuters) – Indonesian President Joko Widodo said strategic cooperation with Australia on batteries for electric vehicles is a priority after talks with Australian Prime Minister Anthony Albanese on Tuesday over green economy and regional security went.

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

The electric vehicle industry makes extensive use of the metal.

Widodo seeks cooperation with Australia, a major supplier of lithium battery components.

“Indonesia and Australia must build more substantial and strategic economic cooperation through joint production of electric vehicle batteries,” Widodo told reporters after an annual leadership meeting with Albanese in Sydney.

Widodo told business leaders that the Southeast Asian country aims to produce 1 million electric cars and 3.2 million electric motorcycles by 2035.

The Indonesian Chamber of Commerce and Industry (KADIN) has signed an “Action Plan” with the state of Western Australia on critical mineral supply chain and workforce skills, Indonesia’s Economy Ministry said.

Albanese said the global trend towards electric vehicles is an “incredible opportunity”.

Meanwhile, Albanese announced an A$50 million (US$33 million) initiative to bring private climate finance to Indonesia and said Export Finance Australia will partner with PT Perusahaan Listrik Negara (PLN) on a A$200 million equity finance facility Set up USD to support Indonesia’s energy transition.

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

The Southeast Asian country is Australia’s 13th largest trading partner, with inter-nation trade worth A$23.3 billion last year. Australian investment in Indonesia totaled A$4.3 billion (US$2.87 billion) in 2021.

The countries are negotiating a defense treaty, with leaders at the meeting also emphasizing the “importance of diplomacy to avoid the risk of miscalculation” in the Indo-Pacific region.

“All countries, large and small, have a shared responsibility to help keep the peace in the region, and Indonesia’s contribution to regional security under the President’s leadership has been key,” Albanese told reporters.

Widodo will travel to Papua New Guinea on Wednesday.

($1 = 1.5035 Australian dollars)

Reporting by Kirsty Needham in Sydney and Fransiska Nagoy and Ananda Teresia in Jakarta; Editing by Himani Sarkar

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