In order to build an electric car battery ecosystem in Indonesia, President Joko Widodo (Jokowi) invited Australian Prime Minister Anthony Norman Albanese to cooperate.
Understandably, Australia has lithium potential that can be combined with Indonesia's nickel potential for the production of electric car batteries.
"I just offered to Prime Minister Anthony Albanese, in Australia there's lithium, we've got nickel. If combined, it will become an electric car battery," said Jokowi at the 2022 B20 Summit Indonesia, Monday (14/11).
However, the offer has conditions. Jokowi requested that if the downstream cooperation of electric car batteries is realized, the production process will be carried out in Indonesia. This means that Australia needs to send lithium to Indonesia to downstream electric car batteries.
"But I ask Prime Minister Albanese for his lithium to be brought to Indonesia only. Together, we are downstreaming in Indonesia," Jokowi invited.
The government continues to encourage the implementation of downstream in all industrial sectors. One of them is in the new energy sector, namely the downstreaming of the electric-based vehicle industry.
Just so you know, the government has inaugurated the implementation of the plan for the second phase of integrated electric batteries in the Integrated Industrial Area, Batang, Central Java last June. Downstreaming electric batteries in Batang is the first investment in the world to integrate the production of electric vehicles from upstream to downstream.
Starting with nickel mining smelters, precursor plants, cathode factories then electric batteries, battery packs to electric cars. Coupled with the battery recycling industry which will also exist in Indonesia.
In addition, Indonesia is currently encouraging downstreaming in the mining industry. The government has stopped importing nickel in the form of raw materials.
With downstreaming, nickel exports jumped to IDR 360 trillion from previously only IDR 15 trillion per year. This is what makes Jokowi getol encourage downstreaming in Indonesia.
After nickel dystop, the plan is that in 2 years the government will stop exporting raw materials for asphalt, tin, bauxite to copper.
Image source: SETNEG/BPMI Setpres
