Indonesia Targets Australian Investment for Downstream Processing, Infrastructure, and Green Energy
Deputy Minister of Investment and Downstreaming/Wakil Kepala Badan Koordinasi Penanaman Modal (BKPM) Todotua Pasaribu asserted that Indonesia and Australia are at a pivotal moment, driven by complementary economies and the maturing implementation of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA). He made the remarks as a keynote speaker at the Indonesia-Australia Business Summit (IABS) for Indonesia Updates 2026 in Sydney on Tuesday (30/6).
“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. We invite Australian investors to be part of a new chapter in Indonesia’s economic growth through investment oriented towards downstream processing, infrastructure, food security, energy transition, and the green economy,” said Deputy Minister Todotua.
The statement underscored the focus of his working visit to Sydney on 29–30 June 2026, which aimed to strengthen investment partnerships. The agenda began with a meeting with the Indonesian Chamber of Commerce and Industry (KADIN) at the Indonesia Investment Promotion Center (IIPC) Sydney office.
Subsequently, Deputy Minister Todotua held a one-on-one meeting with Pure Battery Technologies (PBT), an Australian battery material technology company represented by Chairman Stephen Wilmot. During the meeting, PBT presented its investment plan to build a precursor Cathode Active Material (pCAM) facility in Indonesia as part of strengthening the national battery industry ecosystem. The discussion also covered collaboration opportunities, site readiness, and steps to accelerate project realisation.
“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,” Deputy Minister Todotua explained.
Beyond the battery industry sector, Deputy Minister Todotua also met with BCI Minerals to explore investment opportunities in the downstream processing of industrial salt. The discussion focused on the potential to meet national industrial raw material needs while simultaneously encouraging added value through the domestic processing of non-metallic minerals.
The first day’s agenda concluded with the Indonesia-Australia Business Summit 2026 Dialogue Dinner, which brought together government officials, investors, financial institutions, and business actors from both countries to strengthen business networks and explore investment cooperation opportunities across strategic sectors.
On the following day, Deputy Minister Todotua served as a keynote speaker at the Indonesia-Australia Business Summit for Indonesia Updates 2026, themed “Financing Sustainable Growth: Strengthening Food Systems, Infrastructure, and Economic Resilience between Indonesia and Australia.” The forum was attended by representatives from the Embassy of the Republic of Indonesia in Canberra, the Consulate General of the Republic of Indonesia in Sydney, the Indonesia Investment Promotion Center (IIPC) Sydney, policymakers, business actors, financial institutions, and academics from both nations.
“Downstream processing is the core of Indonesia’s economic transformation. The government has identified 28 strategic commodities with an investment potential reaching USD 618 billion by 2040. This potential is projected to generate export value of USD 857 billion and create more than three million direct jobs,” Deputy Minister Todotua stated during the session.
Todotua also stressed the importance of strengthening regional logistics connectivity by optimising the Indonesian Archipelagic Sea Lane (ALKI) II as a strategic route linking the Pacific and Indian Oceans.
“ALKI II is a strategic shipping lane connecting the Pacific and Indian Oceans via the Lombok and Makassar Straits. In 2024, this corridor saw trade flows of iron ore worth A$138 billion, coal worth A$91 billion, and LNG worth A$69 billion. This potential presents a significant opportunity for Indonesia and Australia to strengthen supply chains, logistics, and investment in the region,” Todotua revealed.
Through this series of working visits, the Ministry of Investment and Downstreaming/BKPM reaffirmed its commitment to strengthening the strategic partnership with Australia by increasing quality investment. The meetings with investors, dialogues with business actors, and participation in the Indonesia-Australia Business Summit 2026 are expected to be concrete steps in encouraging investment realisation that supports downstream processing, infrastructure development, food security, energy transition, and sustainable economic growth for both countries.