Leveraging the IA-CEPA Framework: Achieving Australia and Indonesia’s Interests in the Electric Vehicle Sector Through Fundings and Educational Platform

This research examines how Indonesia and Australia address their respective interests in the electric vehicle (EV) sector through the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), conceptualized as an international regime. By applying Krasner’s framework of principles, norms, rules, and decision-making processes, this study assesses the effectiveness of IA-CEPA in facilitating economic cooperation and mutual benefits. The research first provides an overview of IA-CEPA’s structure and its classification as an international regime. It then explores two key case studies: the IA-CEPA Economic Cooperation Program (ECP) Katalis and the Indonesia-Australia Skills Exchange (IASE). The Katalis program has played a crucial role in funding initiatives that promote investment and collaboration in the EV industry, while IASE serves as a platform for upskilling Indonesian workers in sectors relevant to electric mobility. These cases illustrate how IA-CEPA functions as a mechanism to align bilateral interests, not only in the EV sector but also in areas such as trade, e-commerce, skills development, and investment. Furthermore, the study highlights the potential for Indonesia and Australia to expand their cooperation under IA-CEPA by conducting market research on green hydrogen, a key component of future sustainable transportation. Through qualitative analysis and secondary data sources, this research argues that IA-CEPA exemplifies a successful international regime, fostering economic integration and sustainable industrial transformation. The findings contribute to discussions on economic diplomacy, international cooperation, and the role of bilateral agreements in addressing global sustainability challenges.

Keywords: Australia; Electric Vehicle; IA-CEPA; Indonesia; Katalis