Indonesia-Australia Making a Case for Virtual Manufacturing
JAKARTA, 10 NOVEMBER 2023 – Indonesia’s manufacturing prowess may have found a promising partner in Australia’s growing appetite for innovative electric mobility solutions. That’s the message from a recent business forum on virtual manufacturing, which connected Australian electric mobility industry players with Indonesia’s leading manufacturers.
“We’re always looking for opportunities to forge closer trade and investment between Australia and Indonesia. The global green-energy transition and rapid growth in electric mobility makes it an appealing sector to explore the potential of combining Australian innovation with Indonesia’s extensive manufacturing capabilities,” said Paul Bartlett, Director, Katalis, a government-backed business development program established to support implementation of the Indonesia-Australia Comprehensive Economic Partnership Agreement.
The forum also saw the launch of a new report; Virtual Manufacturing in Indonesia: Opportunities for Australian Businesses, a first-time deep dive into opportunities in the electric mobility market between
Indonesia and Australia.
The report found that Australia’s drive for electrification in the mobility sector is underpinned by a national goal of reaching net zero emissions by 2050, giving strong incentive to explore new markets for manufacturing and development.
“The global electric mobility market is surging, presenting a prime opportunity for Australian businesses to emerge and expand. Offshore manufacturing may be a commercially viable option for new entrants looking for cost-effective, sustainable production, whether they’re increasing production, manufacturing specific component parts, or testing prototypes,” said Dr David Mitchell, Lead Adviser for Market Integration, Katalis, who led the study.
Home to the world’s 10th largest manufacturing industry, as well as the world’s largest reserve of nickel, investments into Indonesian manufacturing grew by 52 percent in 2022 compared to 2021. Manufacturing has been the biggest contributor to Indonesia’s GDP for the last decade, boosted by ambitious policy and incentives to ramp up electric vehicle production, making Indonesia a prime candidate for Australian investment in mobility solutions.
The report Virtual Manufacturing in Indonesia: Opportunities for Australian Businesses is available for
IA-CEPA ECP Katalis (Katalis) is a unique, five-year (2020-25) government-backed business development program unlocking the vast potential of the economic partnership between Australia and Indonesia. Katalis was established under the Indonesia-Australia Comprehensive Economic Partnership Agreement Economic Cooperation Program (IA-CEPA ECP). The program complements other Australian development programs with a commercially oriented, bilateral approach and places gender equality and social inclusion at the centre of everything we do.
Ms. Adhi Fitri Dinastiar, Katalis Communications Officer
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