Indonesia and Australia Cooperation in the Development of the Electric Vehicle Ecosystem in 2023
DOI:
https://doi.org/10.59261/bustechno.v7i5.841Keywords:
Australia, Bilateral Cooperation, Electric Vehicle Ecosystem, IndonesiaAbstract
Background: As the demand for electric vehicles increases globally, Indonesia one of the world's largest nickel producers has set its ambitions to expand its role in the global electric vehicle supply chain. To achieve its ambition, Indonesia signed a memorandum of understanding with Australia to develop an electric vehicle ecosystem in November 2023. The partnership with Australia is particularly interesting, given that Indonesia previously has established a strategic partnership with South Korea, which is known for its superiority in electric vehicle technology development.
Objective: This study aims to identify the factors influencing Indonesia's decision to cooperate with Australia in developing the electric vehicle ecosystem.
Result: Based on William D. Coplin's Decision-Making Theory, this study identifies three factors that drive Indonesia to cooperate with Australia in the development of the electric vehicle ecosystem: bureaucratic influence, Indonesia's economic ambition, and global political dynamics. These dynamics include the transition in battery materials from nickel to lithium, the enactment of the United States' Inflation Reduction Act (IRA), and strategic relationship between Australia–Indonesia.
Conclusion: There is an overlap between domestic interests and the international context, leading to the agreement between Indonesia and Australia for the development of the electric vehicle ecosystem.
References
Aderibigbe, O.-O., & Gumbo, T. (2023). The Role of Electric Vehicles in Greening the Environment: Prospects and Challenges. 777–786. https://www.corp.at/
AEML, & Ventures, A. C. (2023). Indonesia’s Electric Vehicle Outlook. AC Ventures x AEML.
Agency, I. E. (2016). Global EV Outlook 2016: Beyond One Million Electric Cars. IEA.
Agency, I. E. (2017). Global EV Outlook 2017: Two Million and Counting. IEA.
Agency, I. E. (2023a). Global EV Outlook 2023: Catching up with climate ambitions. International Energy Agency.
Agency, I. E. (2023b). Inflation Reduction Act of 2022. IEA.
Aichelin. (2024). LFP VS NMC Battery: Unveiling the Differences for a Sustainable Future.
Anfasa, F. A. (2023). Resiprositas Indonesia dan Australia dalam Kerja Sama Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) Periode Tahun 2020-2021. Ecoplan, 6(1). https://doi.org/10.20527/ecoplan.v6i1.622
Australia, M. for I. (2023). Indonesia and Australia cooperation on electric vehicles. Australian Government.
Australia, P. M. of. (2023). Australia-United States Climate, Critical Minerals and Clean Energy Transformation Compact. Prime Minister of Australia.
Authority, C. C. (2022). First Annual Progress Report: The baseline, global context, and methodology. Climate Change Authority.
Blaxland, J. (2021). Imagining Sweeter Australia-Indonesia Relations. Journal of Global Strategic Studies, 1(1), 55–76. https://doi.org/10.36859/jgss.v1i1.572
Britt, A. F., & Czarnota, K. (2024). A review of critical mineral resources in Australia. In Australian Journal of Earth Sciences (Vol. 71, Number 8). https://doi.org/10.1080/08120099.2024.2430279
Bryman, A. (2012). The Nature of Qualitative Research. In Social Research Methods, 4th Edition (pp. 379–387).
Center, F. T. A. (2020). IA-CEPA: Indonesia-Australia Comprehensive Economic Partnership Agreement. Direktorat Perundingan Bilateral Kementerian Perdagangan.
Coplin, W. D. (2003). Pengantar Politik Internasional: Suatu Telaah Teoretis. Sinar Baru Algensindo.
Creswell, J. W., & Creswell, J. D. (2023). Research Design, Qualitative, Quantitative and Mixed Methods Approaches. In SAGE Publications India: Sixth Edit (Number 1).
Darmawan, W., Ambarnis, A., Aderoben, A., & Fauzi, W. I. (2025). Constructing Narratives: Indonesia-Australia Relations in Indonesian History Textbooks. Paramita, 35(1). https://doi.org/10.15294/paramita.v35i1.18846
El Shaddai, S. R., Widhiyoga, G., & Wijayati, H. (2023). Kerja Sama Indonesia-Korea Selatan dalam Akselerasi Pengembangan Mobil Listrik di Indonesia. Global Political Studies Journal, 7(2), 127–147. https://doi.org/10.34010/gpsjournal.v7i2.9899
Feng, X., & Ji, X. (2026). United States — Certain Tax Credits Under the Inflation Reduction Act. Panel Report. WT/DS623/R. American Journal of International Law, 120(3). https://doi.org/10.1017/ajil.2026.10169
Heap, M., & Kingsley, J. (2020). The Indonesia–Australia Comprehensive Economic Partnership Agreement. Australian Journal of Asian Law, 21(1), 131–149. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3748202
House, T. W. (2023). Building a Clean Energy Economy: A Guidebook to the Inflation Reduction Act’s Investments in Clean Energy and Climate Action. The White House.
Hsu, C. (2022). Australia’s Indo-Pacific Strategy under the Albanese Labor Government. Taiwan Strategists, 14, 41–58.
Interesse, G. (2023). Indonesia and Australia Sign MoU to Boost EV Collaboration. ASEAN Briefing.
Jannesar, N. A., Poelzer, G. A., Zhang, S. E., Rosenkranz, J., Pettersson, M., & Ghorbani, Y. (2024). Sustainability challenges throughout the electric vehicle battery value chain. Renewable and Sustainable Energy Reviews, 191, 114176. https://doi.org/10.1016/j.rser.2023.114176
Khairunnissa, S. (2024). Analisis Perjanjian Indonesia- Australia Comprehensive Economic Partnership Agreement (IA-CEPA) Terhadap Ekspor Produk Pertanian Indonesia. Law, Development and Justice Review, 7(3). https://doi.org/10.14710/ldjr.7.2024.213-231
Kusuma, D. P., Dewi, K. P., & Atmika, G. S. (2025). Nickel Diplomacy: The Geopolitics of Indonesia’s Downstream Policy and the Global Electric Vehicle Supply Chain. Indonesia Discourse, 2(2), 215–240. https://doi.org/10.15294/indi.v2i2.43038
Medina, A. F. (2023). Unleashing Nickel’s Potential: Indonesia’s Journey to Global Prominence. ASEAN Briefing.
Medina, A. F. (2024). Indonesia’s Electric Battery Industrial Strategy. ASEAN Briefing.
Murtasidin, B. (2021). Kepentingan Ekonomi Politik Indonesia dalam Kerjasama Comprehensive Economic Partnership Agreement dengan Australia. Jurnal Dinamika Pemerintahan, 4(1), 52–63. https://doi.org/10.36341/jdp.v4i1.1726
Neuman, W. L. (2014). Social Research Methods: Qualitative and Quantitative Approaches. Pearson.
Nurhayati, D. (2025). Strategi Indonesia Dalam Menghadapi Tantangan Global Dibidang Ekonomi. Jurnal Heritage, 3(1).
Organization, W. T. (2024). United States-Certain Tax Credits Under the Inflation Reduction Act. WTO.
Pandyaswargo, A. H., Wibowo, A. D., Maghfiroh, M. F., Rezqita, A., & Onoda, H. (2021). The Emerging Electric Vehicle and Battery Industry in Indonesia: Actions around the Nickel Ore Export Ban and a SWOT Analysis. Batteries, 7(4), 80. https://doi.org/10.3390/batteries7040080
Panturu, A., Surianta, A., & Audrine, P. (2021). Indonesia-Australia Comprehensive Economic Partnership Agreement: Building the Powerhouse. Center for Indonesian Policy Studies.
Pirmana, V., Alisjahbana, A. S., Yusuf, A. A., Hoekstra, R., & Tukker, A. (2023). Economic and environmental impact of electric vehicles production in Indonesia. Clean Technologies and Environmental Policy, 25, 1871–1885. https://doi.org/10.1007/s10098-023-02475-6
Pratama, A., & Yuliana, G. (2024). The Ratification of Indonesia-Australia Comprehensive Economic Partnership Agreement: Investment Challenges and Opportunities. Audito Comparative Law Journal (ACLJ), 5(1). https://doi.org/10.22219/aclj.v5i1.29644
Raharyo, A., Mertawan, G. A., & Baskoro, R. (2022). Competitive Advantage Between Indonesia and Thailand on Electric Vehicle Manufacturing. Journal of Economics and Business Aseanomics, 7(2), 101–121. https://doi.org/10.33476/jeba.v7i2.3418
Reform, I. for E. S. (2021). Mengembangkan Ekosistem Kendaraan Listrik di Indonesia: Pelajaran dari Pengalaman Amerika Serikat, Norwegia dan Cina. IESR.
RI, K. (2023). MoU KADIN dengan Pemerintah Australia Barat Tekankan Pentingnya Kerjasama Untuk Bangun Industri Mobil Listrik. Kementerian Luar Negeri RI.
RI, K. (2024). President Jokowi Meets Australian Prime Minister Albanese to Strengthen Strategic Cooperation in the Indo-Pacific. Kementerian Luar Negeri RI.
RI, K. P. (2023). Menko Airlangga: Pentingnya Mewujudkan Indonesia-Australia sebagai Pemain Utama Global Value Chains Baterai dan Mineral Penting (Critical Minerals). Kementerian Koordinator Bidang Perekonomian.
RI, S. (2022). Di Forum B20, Presiden Ungkap Tiga Strategi Besar Indonesia Hadapi Tantangan Ekonomi Global. Sekretariat Kabinet RI.
Roberts, C., & Habir, A. (2015). Indonesia–Australia Relations: Progress, Challenges and 195. In Indonesia’s Ascent: Power, Leadership, and the Regional Order (pp. 195–218).
Schröder, M., & Iwasaki, F. (2023). From nickel to Electric cars? Indonesia’s resource cum automotive industry policy. Journal of the Asia Pacific Economy, 1–22. https://doi.org/10.1080/13547860.2023.2231192
Sefriani. (2022). Hukum Internasional: Suatu Pengantar. Rajawali Pers, 4(3).
Setiani, H., Valennia, R., & Rusni, N. K. (2024). Nickel export ban policy in Indonesia - a path to sustainable economic development? EcoProfit: Sustainable and Environment Business, 1(2). https://doi.org/10.61511/ecoprofit.v1i2.2024.468
Setiawan, V. V. (2023). Demi Jadi “Raja”, RI Impor 60 Ribu Ton Lithium dari Australia. CNBC Indonesia.
Suci, K. Y. (2024). Dinamika Persaingan dan Prospek Industri Mobil Listrik di Indonesia: Analisis Tren dan Implikasi. Syntax Idea, 6(10). https://doi.org/10.46799/syntax-idea.v6i10.8041
Suherman, I., Rochani, S., & Cahyaningtyas, D. (2021). Value-added analysis of the electric vehicle battery industry in Indonesia. IOP Conference Series: Earth and Environmental Science, 882(1), 012079. https://doi.org/10.1088/1755-1315/882/1/012079
Suparji, Wahito Nugroho, H. S., & Surtinah, N. (2024). Handling Stunting in Indonesia: Challenges, Progress and Recommendations. In National Journal of Community Medicine (Vol. 15, Number 2). https://doi.org/10.55489/njcm.150220243546
Tritto, A. (2023). How Indonesia Used Chinese Industrial Investments to Turn Nickel into the New Gold. Carnegie Endowment for International Peace.
Veza, I., Abas, M. A., Djamari, D. W., Tamaldin, N., Endrasari, F., Budiman, B. A., Idris, M., Opia, A. C., Juangsa, F. B., & Aziz, M. (2022). Electric Vehicles in Malaysia and Indonesia: Opportunities and Challenges. Energies, 15(7). https://doi.org/10.3390/en15072564
Wijaya, D. A. S., & Ahmad Fawaiq Suwanan. (2024). Investigasi Kebijakan Hilirisasi Nikel Indonesia: Studi Perbandingan antara Indonesia dan Amerika Serikat. MARAS: Jurnal Penelitian Multidisiplin, 2(4). https://doi.org/10.60126/maras.v2i4.477
Wijaya, T., & Sinclair, L. (2024). An EV-fix for Indonesia: the green development resource nationalist nexus. Environmental Politics, 1–23. https://doi.org/10.1080/09644016.2024.2332129
Zein, F. Y., & Susanto, S. R. (2023). Faktor Pemilihan Korea Selatan sebagai Mitra Strategis Indonesia dalam Pengembangan Electric Vehicle. Jurnal Hubungan Luar Negeri, 8(1), 115–140. https://doi.org/10.70836/jh.v8i1.8
Zhang, M. Y. (2023). Australia, Indonesia aim to challenge China’s dominance in EVs and batteries. University of Technology Sydney.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Tanti Belinda Candrawati

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International (CC-BY-SA). that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.



