By Kirsty Needham

SYDNEY (Reuters) -A green economy, easing of business visas for Indonesians, and regional security will be discussed as Indonesian President Joko Widodo meets his Australian counterpart on Tuesday, Foreign Minister Penny Wong said.

Widodo met Australian Prime Minister Anthony Albanese at the harbourside Admiralty House in Sydney on Tuesday morning, before the pair were due to travel by boat to Taronga Zoo, part of a regional conservation programme for Sumatran Tigers, for annual leaders talks.

The economy will be a key topic, and Australia is set to announce visa changes to make business travel easier for visiting Indonesians, Wong told ABC radio on Tuesday.

Indonesia is Australia’s 13th largest trading partner, and Australian investment in Indonesia totalled A$4.3 billion ($2.87 billion) in 2021, with coal the top export, government data shows.

Widodo, in his second and final term in office, wants to build an electric vehicle battery production industry in Indonesia, which has the world’s largest nickel reserves.

The EV industry uses the metal extensively.

Widodo has said in interviews that he is seeking cooperation from Australia, a major supplier of key battery component lithium.

Widodo understands the importance of making the transition to a green economy, Wong said. The leaders would discuss how Australia and Indonesia could “collaborate together” on supply chains and getting to net zero emissions, she added.

Indonesia’s Chamber of Commerce and Industry (KADIN) signed an “action plan” with the state of Western Australia on critical mineral supply chain and worker skills, Indonesia’s Ministry of Economic Affairs said.

On AUKUS, Wong said Australia would be transparent as it discusses the plan to acquire nuclear-powered submarines in the next decade through the defence partnership with the U.S. and Britain.

Indonesia has previously expressed concerns about the ramifications of the trilateral AUKUS security pact.

Indonesia is “keen to ensure nuclear material is not allowed to proliferate… We both want a peaceful and stable region,” Wong said.

Widodo will travel to Papua New Guinea on Wednesday.

($1 = 1.4972 Australian dollars)

(Reporting by Kirsty Needham in Sydney and Fransiska Nangoy in Jakarta; Editing by Himani Sarkar)

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