Published on 05/07/2023 at 08:25 GMT+7 Reading time
Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) Arsjad Rasjid signed a memorandum of understanding (MoU) with the West Australian government in the field of critical mineral processing in both countries.
The signing is very important because the processing of critical minerals will be used for the development of the electric vehicle (EV) ecosystem in Indonesia, as well as an increase in trade between Indonesia and Australia.
"With this agreement, we will encourage Australian and Indonesian companies to work together in developing critical minerals from mining to processing," said Rasjid, July 4, 2023.
So far only three Australian companies have met with KADIN including, Global Lithium, Lightning Minerals, and Mineral Alliance Asset Ltd. However, what will be created or developed from this meeting is still unknown.
A follow up to the G20 summit
Rasjid said that the cooperation plan was the result of a follow-up to the talks between President Joko Widodo and Australian Prime Minister Anthony Albanese at the 2022 G20 Summit.
Previously, President Joko 'Jokowi' Widodo invited the Australian government to partner in developing the electric battery industry in Indonesia on the grounds that Australia has one type of commodity that Indonesia does not have.
"We consistently carry out the downstream industrialization of the raw materials we have. Our message to Prime Minister Albanese is that the lithium can be brought to Indonesia," Jokowi said, November 14, 2022.
Rasjid also explained the same importance of this agreement because there is one critical mineral that is not found in Indonesia and can be found in Australia, Lithium.
Lithium is a key mineral in the manufacture of EV batteries alongside nickel, manganese and cobalt.
Rasjid said Australian and Indonesian companies could work together to create good value in the business.
Furthermore, after the signing, there will be visits by hundreds of Australian businessmen to Indonesia, which will be scheduled for 2-9 September 2023 or during the 43rd ASEAN Summit in 2023.
"We hope that fellow entrepreneurs from Australia who are visiting Indonesia can cooperate and ultimately get better investments in Indonesia," he said.
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