KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Arsjad Meets President Jokowi in Australia with Indonesia-Australia Economic Cooperation Mission

The Indonesian Chamber of Commerce and Industry (Kadin) is exploring opportunities for wider cooperation in trade and investment with Australia. The desire to expand economic cooperation is reflected in the visit of President Joko Widodo and his entourage, including a delegation from Kadin Indonesia, to Australia on July 3-4, 2023.

Arsjad Rasjid, Chairman of Kadin Indonesia, said that his visit together with President Joko Widodo this time aims to maximize the growth potential of both countries. Australia is Indonesia's 10th largest trading partner with a trade value of US$12.64 billion in 2021.

"As a representation of business people in Indonesia, we encourage all efforts to connect more businesses from various sectors between Indonesia and Australia as well as expand the volume of trade and diversify investment between the two countries," Arsjad said during a meeting with the Prime Minister of Western Australia, Roger Cook.

Last week, Arsjad and his delegation conducted a roadshow to Australia and attended the Australia-ASEAN Business Forum, where he met with a number of stakeholders to discuss future economic cooperation between Indonesia, ASEAN and Australia.

"We see a tremendous desire for greater cooperation between Indonesia, ASEAN and Australia," Arsjad said.

Earlier in February 2023, Kadin Indonesia and the Government of Western Australia signed a memorandum of understanding (MoU) to explore partnership opportunities in critical minerals for the battery and electric vehicle (EV) industries. Australia is a major supplier of lithium, while Indonesia is the largest producer of nickel, a vital component in EV batteries. Both countries have significant reserves for battery production with complementary potential to realize mutually beneficial cooperation.

As a follow-up to the MoU, the Indonesian Chamber of Commerce and Industry and the Government of Western Australia have agreed on a plan of action (Plan of Action) for the implementation of the MoU to 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. This is done through joint investment in strategic areas in the economic development of both countries," said Arsjad.

On the occasion, Arsjad, who also serves as Chairman of the ASEAN Business Advisory Council, invited business people from Western Australia to visit Indonesia and attend the ASEAN Business and Investment Summit on September 3-4, 2023 in Jakarta.

According to Arsjad, Australia is ASEAN's strategic partner in trade and investment.
In 2021, Australia's trade value with 10 ASEAN member countries exceeded 127 billion Australian dollars, greater than Japan or the United States.

Bringing Regional MSMEs

The two-day visit of the Kadin Indonesia delegation was also filled with an agenda to attend the Indonesian Diaspora Business Forum in Australia. The forum aims to introduce and bring together diaspora business people with Indonesian business people, including micro, small and medium enterprises (MSMEs).

"The role of the diaspora in opening and developing market access for Indonesian products to Australia is expected to bring the interests of both parties to maximize the potential for mutual growth," Arsjad said.

In the meeting forum, an MoU was also signed between Kadin Yogyakarta Special Region (DIY) and Melbourne supported by the Yogyakarta Regional Government. Through the MoU, Kadin DIY will build a warehouse in Melbourne as a base facility for marketing MSME products from Yogyakarta.

Kadin Indonesia also brought MSMEs from East Nusa Tenggara, La Moringa, to sign an MoU with Livingstone International, one of the market leaders in logistics in Australia founded by Indonesian diaspora, Ivan Paulus. Through this MoU, La Moringa, whose market has now expanded to Jakarta, is expected to expand to Sydney, Australia.

The Kadin Indonesia delegation also attended a meeting with the Minister of Trade of New South Wales, Anoulack Chanthivong, followed by the signing of an MoU with Katalis for green economy cooperation. The signing of MoUs on business cooperation was also carried out between a number of Indonesian companies and Australian companies.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry