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Posted: 2023-07-01 21:03:26

Read in Bahasa Indonesia

Solo Mayor Gibran Rakabuming, eldest son of Indonesian President Joko Widodo, has just handed out 61 electric motorcycles to government workers in the Central Java city of Surakarta.

"More comfortable, more environmentally friendly," Mr Rakabuming said, adding the electric motorcycles were cheaper than other government vehicles to buy and run.

Mr Rakabuming's decision is in line with a presidential instruction issued in September 2022, stating electric vehicles should be used as official vehicles for central and regional governments.

That instruction is part of a broader Indonesian government strategy aimed at increasing the use of electric vehicles on local roads, which are teeming with millions of carbon-emitting motorcycles every day.

At the same time, Indonesia is striving to become a global electric battery and vehicle manufacturing hub.

And it wants Australia's help to realise the ambition.

"Ever since COVID, there's been discussion in Indonesia on how to actually tap into this big opportunity of electric vehicles," said the Australian National University's Dr Arianto Patunru.

Opportunities for the two countries to work together look set to be on the agenda when Indonesian President Joko Widodo arrives in Sydney this week.

Some companies, like United E-Motor, assemble electric motorcycles in Indonesia like at this factory in Bogor, near Jakarta.()

Indonesia is the biggest producer of nickel ore in the world. It has banned exports of that raw material.

High purity nickel is a key component in many electric vehicle batteries.

But Indonesia needs to import other critical minerals that it doesn't produce locally — like the lithium also used in EV batteries that Australia has in swathes.

"Indonesia has lots and lots of nickel as does Australia, but we don't have lithium," Dr Patunru said.

"Indonesia needs to collaborate with other countries … one of which is Australia."

Indonesian president to visit Sydney 

The Indonesian president will begin a three-day trip to Australia on Monday.

"I am delighted to welcome my friend President Widodo to Australia. This will be our fourth meeting together," Prime Minister Anthony Albanese said.

"As one of our closest neighbours, Australia is building extensive cooperation with Indonesia on climate, economic development, education and regional security issues."

Indonesian ministers and business leaders, including Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan, have repeatedly voiced a desire to partner with Australia to import lithium.

"In front of lithium entrepreneurs, I would like to say that Australia is the best candidate and our potential partner to develop the EV battery industry because half of the world's lithium is in the country of kangaroos," he wrote in a social media post during a visit to Australia earlier this year.

Indonesian President Joko Widodo hopes to transition many motorcycles on local roads to electric models.()

The first Australia-Indonesia lithium mining and processing venture is already being discussed, according to Arsjad Rasjid from the Indonesian Chamber of Commerce and Industry (KADIN).

"Unfortunately, the negotiations are still in progress and the agreement wouldn't be able to take place during the presidential visit," he told the ABC.

But he said KADIN will be signing an agreement with the Western Australia government, which follows on from a memorandum of understanding  signed in February, to explore opportunities for partnerships in critical minerals and the EV industry.

It is expected to run for two years.

"We should capitalise on this opportunity to jointly develop a world-class battery manufacturing factory in Indonesia utilising Australian lithium and investments (with lucrative returns, of course) to realise the potential of Indonesia's nickel reserves and plentiful workforce," said Mr Rasjid at the time.

"Together, we can supply the world with our jointly manufactured batteries."

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