Australia-Indonesia Strengthen Climate Cooperation, Energy Transition

JAKARTA - Australia and Indonesia have agreed to strengthen cooperation in various fields, including efforts to respond to climate change and energy transitions, at the annual meeting of leaders of the two countries taking place in Sydney.

Steps to strengthen relations between the two countries were agreed upon in a meeting between Australian Prime Minister Anthony Albanese and President Joko Widodo (Jokowi).

"Australia and Indonesia are working together and committed to facing challenges and opportunities in the future," said PM Albanese in a written statement delivered by the Australian Embassy in Jakarta as reported by ANTARA, Tuesday, July 4.

In facing the pressing challenges of climate change, PM Albanese initiated a $50 million fund through the Australian-Indonesian Climate Partnership and Infrastructure to bring private climate funding to Indonesia.

The leaders also welcomed Australia's Export Capital Plan to build a capital financing facility worth 200 million US dollars (almost IDR 3 trillion) together with PT Perusahaan Listrik Negara (PLN) to support the energy transition in Indonesia.

As the country with the largest economy in Southeast Asia, Indonesia is seen as playing an important role in Southeast Asia's Economic Strategy until 2040.

Along with the two-way trade that has recovered from the pandemic and is now on a new record, with exports to Indonesia reaching USD 14.6 billion (around IDR 146.3 trillion) in 2022, leaders agree that much remains to be done to increase economic integration and two-way investment in Indonesia-Australia.

PM Albanese and President Jokowi also welcomed a number of new trade agreements in Australia and Indonesia's business in the health, mining and digital economy sectors.

Leaders discussed opportunities for the two countries to deal with the global transition in the use of electric vehicles towards carbon emissions net, as well as assigning their respective officials to advance cooperation in this important sector.

Furthermore, the two leaders discussed new ideas about the opportunity for Australian and Indonesian professional workers to work in each country more than ever before.

This includes increasing visa offerings for Indonesian business people and tourists who travel frequently, both parties' professional recognition for engineers, and the latest access to support skills exchange under the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

The leaders also welcomed the plan to renew the bilateral flight service agreement.

The two leaders also discussed educational cooperation that has long been the main pillar of bilateral relations and the essence of warm friendship between students and young Australian and Indonesian professionals.

Leaders welcome the hopes of Western Sydney University, Deakin University, and Central Queensland University to open campuses in Indonesia, joining Monash University which has opened campuses in Jakarta in 2022.

It is recorded that more than 200,000 Indonesian students have studied at Australian universities.

Marking Australia's 70th year of scholarships for Indonesian students this year, PM Albanese announced a new program to improve the experience of "learning in Australia" for Indonesians and new opportunities for Indonesians to study in more Australian campuses in Indonesia.

Albanese has also launched a program that has been renewed to encourage more Australian students to learn and learn Indonesian languages and culture.

Highlighting the strength of defense and security relations between Australia and Indonesia, PM Albanese and President Jokowi also welcomed the development of negotiations on the Defense Cooperation Agreement.

The two leaders also discussed Australia and Indonesia's common vision for an open, stable, and prosperous region. In this case, PM Albanese reaffirmed Australia's commitment to ASEAN centrality.

He emphasized that Australia will continue to support Indonesia's priority as Chair of ASEAN in 2023.

Australian Prime Minister is looking forward to returning to Indonesia in September to attend the Asia Timur Summit and the ASEAN-Australia summit, which President Jokowi will host.

"Indonesia is a very important country for Australia. Its prosperity, security, and stability make the Indo-Pacific region more prosperous, safer, and more stable," said PM Albanese.