Kadin-Australia Agree to Collaborate to Manage Critical Minerals Including Lithium

JAKARTA - The Indonesian Chamber of Commerce and Industry (Kadin) and the Australian Government to work together to manage critical minerals in both countries.

This cooperation agreement is considered important because Australia has one of the critical minerals that does not exist in the country, namely lithium.

This collaboration was marked by the signing of a memorandum of understanding (MoU) between the Indonesian Chamber of Commerce and the Australian Government.

The action plan is a follow-up to the visit of President Joko Widodo (Jokowi) and Australian Prime Minister Anthony Albanese at the G20 Summit in Bali, 2022.

Indonesian Chamber of Commerce and Industry chairman Arsjad Rasyid said Australia was the main supplier of lithium, while Indonesia was the largest producer of nickel, a vital component in EV batteries.

"The two countries have reserves that are important enough for battery production with the potential to complement each other to realize mutually beneficial cooperation," he said in an official statement, Tuesday, July 4.

As a follow-up to the MoU, continued Arsjad, the Indonesian Chamber of Commerce and Industry and the Government of Western Australia have agreed on an action plan (Plan of Action) for the implementation of the MoU which will be carried out in 2023-2025 to realize the development of an integrated EV battery industry.

“This MoU has opened a wider door for Indonesia and Australia to capitalize on joint innovation to strengthen their position in the global supply chain. The way to do this is through joint investment in strategic areas in the economic development of the two countries," he said.

Furthermore, Arsjad said the signing of this MoU was an effort by the Indonesian Chamber of Commerce and Industry to explore opportunities for wider cooperation in the field of trade and investment with Australia.

The desire to expand economic cooperation is reflected in President Joko Widodo's visit with his entourage, including the Indonesian Chamber of Commerce and Industry delegation, to Australia from 3 to 4 July 2023.

Arsjad said his joint visit with Jokowi this time was aimed at maximizing the growth potential of the two countries.

Given that Australia is the 10th largest trading partner for Indonesia with a trade value of 12.64 billion US dollars in 2021.

"As a representative of business actors in Indonesia, we encourage all efforts to connect more businesses from various sectors between Indonesia and Australia as well as expanding trade volume and investment diversification between the two countries," he explained.

Last week, Arsjad and his delegation conducted a roadshow to Australia and attended the Australia-ASEAN Business Forum.

During the visit, he met with a number of stakeholders to discuss future economic cooperation between Indonesia, ASEAN and Australia.

"We see an extraordinary desire to carry out broader cooperation between Indonesia, ASEAN and Australia," said Arsjad.