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

By Kirsty Needham

SYDNEY (Reuters) – The green economy, an easing of business visas for Indonesians and regional security will be discussed as Indonesian President Joko Widodo meets his Australian counterpart on Tuesday, Foreign Secretary Penny Wong said.

Widodo met business leaders in Sydney on Tuesday morning. The economy will be a key topic when he meets with Anthony Albanese, and Australia is expected to announce visa changes to make business travel easier for Indonesians, Wong told ABC radio on Tuesday.

Indonesia is Australia’s 13th largest trading partner and Australian investment in Indonesia totaled AUD4.3 billion (US$2.87 billion) in 2021, with coal the top export item, according to government data.

Widodo wants to develop an electric vehicle battery manufacturing industry in Indonesia, which has the world’s largest nickel reserves, and has said in interviews that he is seeking cooperation with Australia, a key supplier of key battery components lithium.

Widodo understands the importance of transitioning to a green economy, Wong said. Leaders would discuss how Australia and Indonesia could “cooperate” on supply chains and achieve net-zero emissions, she added.

Australia will be transparent when discussing the plan to acquire nuclear submarines over the next decade as part of the AUKUS defense partnership with the United States and Britain, she said.

Indonesia “is interested in making sure nuclear material doesn’t proliferate further… We both want a peaceful and stable region,” Wong said.

($1 = 1.4972 Australian dollars)

(Reporting by Kirsty Needham. Editing by Gerry Doyle)