Jakarta. Australia will provide $50 million in climate funding to Indonesia’s small and medium enterprises (SMEs) as well as startups, according to Australian Prime Minister Anthony Albanese when hosting President Joko “Jokowi” Widodo in Sydney.

The money would mark the first tranche of the A$200 million Australia-Indonesia climate and infrastructure partnership. Albanese first announced this A$200-million initiative during his visit to the Bogor Palace last June.  The initial $50 million is expected to unlock investment into climate and clean-energy-focused Indonesian SMEs.

“President [Jokowi] and I see a real opportunity for both of our countries in the climate and energy transition,” Albanese said in a joint presser with Jokowi in Sydney on Tuesday.

“Today, I announced that the first tranche of the funding, [namely] $50 million, will be used to invest in startups and SMEs focused on mutual benefit from Indonesia’s energy transition and clean technology sectors,” Albanese said.

Albanese also spoke of the critical minerals action plan that Indonesia’s business lobby Kadin and the Western Australian government had signed earlier that day. 

“There is a lot that Australia can offer Indonesia and the region in the energy transition, including the global move towards electric vehicles [EVs]. We are rich in all of the components and the expertise needed for renewable energy,” Albanese said while adding that both countries would advance partnership on this matter.

Jokowi also commented on the bilateral cooperation on slashing carbon emissions.

“We will focus on pushing for the implementation of the partnership and the development of carbon, capture and storage [CCs] technologies. As well as the [construction of] green energy-oriented smelters in Indonesia,” Jokowi told the same presser.

Jokowi hosted Albanese for an annual leaders’ meeting at the Bogor Palace last year. Albanese’s Bogor trip also took place just two weeks after taking office.