Govt Partners with Australia to Strengthen Indonesia’s Downstream Industry

RRI.CO.ID, Jakarta - Indonesia’s Deputy Minister of Investment and Downstreaming Industry and Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu, believes relations between Indonesia and Australia are entering a phase of strengthened investment.

He said the implementation of the Indonesia‑Australia Comprehensive Economic Partnership Agreement (IA‑CEPA) is further reinforcing economic cooperation between the two countries.

Todotua made the remarks at the Indonesia‑Australia Business Summit for Indonesia Updates 2026 in Sydney on Tuesday, June 30, 2026. He noted that the government continues to improve the investment climate through policy reforms.

“The two countries have complementary economies, supported by the increasingly robust IA‑CEPA framework. The government continues to reform the investment climate by streamlining licensing processes, providing fiscal and non‑fiscal incentives, and developing industrial zones and special economic zones,” Todotua said in a written statement received by RRI.CO.ID on Thursday, July 2, 2026.

He encouraged Australian investors to expand their investments in downstream industries, infrastructure, food security, energy transition, and the green economy. These steps, he said, are expected to strengthen economic growth in both countries.

Todotua’s working visit took place in Sydney on June 29–30, beginning with a meeting with the Indonesian Chamber of Commerce and Industry (KADIN Indonesia) at the Indonesia Investment Promotion Center (IIPC).

He then met with Pure Battery Technologies to discuss investment in Indonesia’s national battery industry, including the construction of a Cathode Active Material (CAM) precursor facility.

“Indonesia already has High Pressure Acid Leach (HPAL) facilities and will soon have battery cell manufacturing. The remaining links in the chain are pCAM and cathodes,” he said, emphasizing that Pure Battery Technologies’ investment is crucial to building an integrated national battery ecosystem.

The meeting also addressed site readiness and project acceleration.

In addition to the battery industry, Todotua met with BCI Minerals to discuss downstream processing of industrial salt, focusing on meeting raw material needs and increasing the value added of non‑metallic minerals.

On the following day, Todotua again served as keynote speaker at the Indonesia‑Australia Business Summit, which addressed themes of strengthening food systems, infrastructure, and sustainable economic resilience.

He explained that the government has identified 28 strategic commodities under the national downstream program, with investment potential estimated at USD 618 billion by 2040.

“Downstreaming is at the heart of Indonesia’s economic transformation. The government has identified 28 strategic commodities with investment potential of up to USD 618 billion by 2040,” he said.

The program is projected to generate USD 857 billion in export value and create more than three million direct jobs.

Todotua also highlighted the importance of optimizing the Indonesian Archipelagic Sea Lanes (ALKI) II, a strategic corridor between the Pacific and Indian Oceans.

“ALKI II connects the Pacific and Indian Oceans via the Lombok Strait and the Makassar Strait. In 2024, this corridor facilitated trade in iron ore worth AUD 138 billion (USD 95.85 billion), coal worth AUD 91 billion, and LNG worth AUD 69 billion,” he said.

He added that this potential opens opportunities to strengthen supply chains, logistics, and investment in both countries. The Ministry expects such cooperation to drive quality investment and sustainable economic growth. (Gusti Panji)