Published on 02/03/2023 at 04:06 GMT+7 Reading time
The Western Australian Government Deputy Premier Roger Cook and the Indonesian Chamber of Commerce and Industry (Kadin) Chairman Arsjad Rasjid signed a Memorandum of Understanding (MoU) in Perth, Australia, on February 21, 2023.
The MoU explored the potential collaborations in crucial minerals for the fast-expanding battery and electric vehicle (EV) sector. The agreement was a result of the promise made during the B20/G20 Summit in Bali in November 2022.
“We must take advantage of this opportunity to jointly develop a world-class battery manufacturing plant in Indonesia by leveraging Australian lithium and investment (with favorable returns of course) to realize the potential of Indonesia's nickel reserves and abundant workforce. Together, we can supply the world with the batteries we produce together,” Rasjid said as quoted from Ruangenergi.com.
Indonesia-Western Australia cooperation
The collaboration between Western Australia and Indonesia will create possibilities in the industrial field, as both countries possess ample mineral resources that can be utilized to manufacture batteries for electric vehicles. This industry is currently crucial in many nations.
The MoU outlines plans for developing industry partnerships in the crucial minerals supply chain and sharing information about legislative or regulatory changes. The agreement - which signing was attended by the Indonesian Consul General in Perth Listiana Operananta - also signifies the dedication of both countries to encourage investment and collaboration that will be advantageous to both Western Australia and Indonesia.
Kadin also had a meeting with three mining companies in Australia, namely Global Lithium, Lightning Minerals, and Mineral Alliance Asset Ltd. on the same day.
Read also: Indonesia aims high on EV, but challenges remain
Western Australia and Indonesia have a past of working together in the resources industry. There are a few Indonesian mining companies that operate in Western Australia, and Western Australian companies have invested in the Indonesian mining sector as well.
The MoU expected to enhance the economic and cultural connections that have been established between both sides.
Indonesia attracts Tesla and BYD
Since 2020, Indonesia has been trying to attract US-based Tesla and Chinese BYD, the world's largest electric vehicle manufacturer, to invest in both car and battery manufacturing. The country is seeking to take advantage of its vast reserves of nickel ore, which can be processed to produce batteries for electric vehicles.
Read also: Government’s negotiation with Tesla, BYD shows positive development
The government's attempts to lure investors into the country's electric vehicle industry have yielded positive results.
Deputy Minister for Investment and Mining Coordinator at the Ministry of Maritime Affairs and Investment Septian Hario Seto explained that that the key to the success of the development of mineral downstream industry would be to attract the global electric vehicle industry to invest in Indonesia.
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