Deputy Minister of Investment Invites Australia to Develop Downstreaming and Battery Ecosystem in Indonesia

Deputy Minister of Investment and Downstreaming/Wakil Kepala Badan Koordinasi Penanaman Modal (BKPM) Todotua Pasaribu has invited Australian investors to take part in the development of Indonesia’s strategic sectors, including industrial downstreaming, the battery ecosystem, infrastructure, food security, and the green economy. The invitation was extended during his keynote address at the Indonesia-Australia Business Summit (IABS) for Indonesia Updates 2026 in Sydney on Tuesday. He stated that Indonesia and Australia are in the right momentum to strengthen economic relations because the two countries have complementary potential. This condition is further reinforced by the increasingly mature implementation of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA). ‘The two countries have complementary economies, supported by an increasingly mature IA-CEPA cooperation framework. The Indonesian government continues to reform the investment climate through licensing simplification, the provision of fiscal and non-fiscal incentives, and the development of industrial zones and special economic zones,’ said Todotua. He affirmed that the government is opening wide opportunities for Australian investors to engage in a new chapter of Indonesia’s economic growth. ‘We invite Australian investors to be part of Indonesia’s new chapter of economic growth through investment oriented towards downstreaming, infrastructure, food security, energy transition, and the green economy,’ he added. During his working visit to Sydney on 29-30 June 2026, Todotua also held meetings with several Australian companies and industry players. One such meeting was with Pure Battery Technologies (PBT), an Australian battery material processing technology company represented by Chairman Stephen Wilmot. The meeting discussed investment plans for the construction of a precursor Cathode Active Material (pCAM) facility in Indonesia. According to Todotua, this investment plays a crucial role in completing the national battery industry supply chain currently being developed by the government. ‘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. This is where investment like Pure Battery Technologies becomes crucial to complete a fully integrated battery ecosystem,’ he explained. Beyond the battery industry, BKPM also held discussions with BCI Minerals regarding investment opportunities in industrial salt downstreaming to meet the needs of national raw materials while creating domestic added value. At the forum, Todotua stressed that downstreaming is a major part of Indonesia’s economic transformation. The government has currently identified 28 strategic commodities with an investment potential reaching USD 618 billion by 2040. This potential is projected to generate export values of up to USD 857 billion and create more than three million direct jobs. Additionally, Indonesia sees significant opportunities to strengthen regional connectivity through the optimisation of the Indonesian Archipelagic Sea Lane (ALKI) II, which connects the Pacific and Indian Oceans via the Lombok and Makassar Straits. ‘This potential represents a major opportunity for Indonesia and Australia to strengthen supply chains, logistics, and investment in the region,’ said Todotua. Through this series of meetings, the Ministry of Investment and Downstreaming/BKPM reaffirmed its commitment to strengthening the strategic partnership with Australia to encourage quality investment and sustainable economic growth.