Australia will be investing $50 million in Indonesian startups and SMEs in the energy transition and clean technology sector. This was revealed by Australian Prime Minister Anthony Albanese when hosting President Joko “Jokowi” Widodo in Sydney.
As per the $200 million Australia-Indonesia Climate and Infrastructure Partnership,which was unveiled last June, this is the first part of the investment that will be done in small-scale Indonesian investment funds that are supporting clean energy, climate technology and climate change projects, including carbon, capture, and storage and green energy smelters.
“There is a lot that Australia can offer Indonesia and the region in the energy transition, including the global move towards electric vehicles. We are rich in all of the components and the expertise needed for renewable energy,” Albanese said. Jokowi also commented on the bilateral cooperation on slashing carbon emissions.
“We will focus on pushing for the implementation of the partnership and the development of carbon, capture and storage [CCs] technologies. As well as the [construction of] green energy-oriented smelters in Indonesia,” Jokowi noted.
“There is a lot that Australia can offer Indonesia and the region in the energy transition, including a global move towards electric vehicles. We are reaching all of the components and the expertise needed for renewable energy,” Albanese said.
Talking to media, Wododo said that he would push the Australian government for an agreement to deepen collaborative efforts in battery and electric vehicle manufacturing as Indonesia aims to become a global EV leader. However, there is no deal has been signed yet.
“Since last year’s Annual Leaders’ Meeting in Bogor there have been many positive developments. And I thank you for your commitments. There are some future priorities that we need to do together.Among others first, Indonesia and Australia must build a more substantive and strategic economic cooperation through the joint production of EV batteries,” he said.
Critical minerals action plan has been signed between Indonesia’s business lobby Kadin and the Western Australian governmen. The two leaders, however, welcomed a critical minerals investment plan of action signed between the Western Australian government and Indonesia’s Chamber of Commerce and Industry.
Further, the 2023-25 action plan would focus on developing resilient and sustainable supply chains, support ing strong environmental and social governance outcomes, and building a skilled workforce.