Indonesia and Australia Cooperation in the Development of the Electric Vehicle Ecosystem in 2023

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.