Jakarta (ANTARA) - Indonesia and Australia could collaborate as key players in the electric vehicle (EV) battery industry to fulfill global demands, Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has said.

To achieve the goal, he witnessed the signing of the action plan for the implementation of a memorandum of understanding between the government of the State of Western Australia and the Indonesian Chamber of Commerce and Industry (KADIN) on Tuesday (July 4), according to a statement from his ministry.

"The signing of the action plan is essential to seize opportunities and gather all parties involved in the essential mineral sector, including battery materials, with parties who will support them financially to realize a more concrete cooperation," Hartarto said in the statement, Tuesday.

The action plan was signed by KADIN Chairperson Arsjad Rasjid and Premier of Western Australia Roger Cook in Sydney, Australia.

The plan aims to detail the implementation of the memorandum of understanding on cooperation for essential mineral resources signed by the two officials in Perth on February 21, 2023.

Meanwhile, Indonesia-Australia Business Council (IABC) Chairperson George Marantika stated that the action plan was intended to follow up on the commitment made during the G20 in November 2022.

The collaboration is conducted under the Indonesia-Australia Economic Partnership Agreement (IA-CEPA) that took effect on July 5, 2020.

The focus of cooperation in the action plan includes supply chain; Environmental, Social, and Governance (ESG); development of capable workforce; and development of sustainable and beneficial essential mineral and battery industries for the two countries.

Meanwhile, Indonesian Ambassador to Australia Siswo Pramono emphasized that a partnership between Indonesia and Western Australia would open new opportunities in the essential mineral sector.

The Western Australia state has abundant mineral resources to produce batteries for EVs, the ambassador noted.

"Australia will be the supplier of lithium, and Indonesia will be the supplier of nickel that are the two main commodities in the production of EVs," Pramono said.

The two countries could contribute more to the global supply chain by fulfilling the global demand for batteries and minerals. Indonesia has also been projected to be the center of nickel production, with abundant nickel resources and workforce, he said.

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Translator: Sanya Dinda S, Nabil Ihsan
Editor: Tia Mutiasari
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