Tuesday, April 16, 2024

Indonesia and Australia forge climate and energy partnership for a green transition

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Journalist IBP




Australia’s Ambassador to Indonesia, Penny Williams, announced a collaborative climate partnership between Australia and Indonesia. Focused on energy transition for faster achievement of net-zero emissions, the partnership aims to attract investments in climate and clean energy. 

Additionally, it facilitates increased private sector financing for Indonesia’s green infrastructure, prioritizing benefits for vulnerable groups, including persons with disabilities and women.

Beyond policy objectives, practical steps have been taken in the transition to clean energy. Both nations are working together to develop the Electric Vehicle (EV) ecosystem in Indonesia. 

During President Widodo’s visit to Australia, leaders agreed to advance cooperation in building the EV production ecosystem. 

This collaboration involves areas such as environmental, social, and corporate governance (ESG) standards, scientific research, and establishing new business relationships.

Australia, possessing deep expertise and technology, seeks to benefit Indonesia by aiding in the development of a resilient and diversified energy supply chain. 

Emphasizing the shared interests of both countries, Ambassador Penny Williams reaffirmed Australia’s commitment to supporting Indonesia’s economic growth and engagement with international economic institutions such as the World Bank and OECD.

Indonesia and Australia, with abundant mineral resources, particularly nickel and lithium crucial for electric vehicle batteries, have signed a Memorandum of Understanding (MoU) on the Formation of a Bilateral Mechanism for Advancing Electric Vehicle Collaboration. 

Erick Thohir, Interim Coordinating Minister for Maritime Affairs and Investment, highlighted the potential for both nations to become key players in the global electric vehicle supply chain.

Indonesia has been advancing its nickel downstream industry towards the electric vehicle ecosystem, with three plants producing mixed hydroxide precipitate, a battery precursor, already in operation. 

Australia, contributing 24% of global lithium reserves, stands as a significant player with 43% of global lithium extraction in 2022. 

Collaborating on lithium resources, Indonesia and Australia aim to establish a new axis in the electric vehicle battery ecosystem, fostering an alliance between the two nations.

Journalist IBP






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