14-8-2023 (JAKARTA) Indonesian officials announced on Monday that electric car manufacturer Tesla is planning to invest in battery materials manufacturing in the country. The Southeast Asian nation has been actively courting Tesla, leveraging its abundant reserves of nickel, a key component in electric vehicle (EV) batteries. An official announcement regarding the investment is expected in the coming months.
Senior minister Luhut Pandjaitan shared the news on Instagram, revealing that he led an Indonesian delegation to meet with Tesla’s CEO, Elon Musk, during a recent visit to San Francisco. According to Luhut, Musk expressed interest in investing in the manufacturing of materials for lithium batteries. However, he clarified that Tesla has no plans to establish a car factory in Indonesia.
“The investment will be significant. Let’s wait for Elon to visit Indonesia around the end of September or October this year,” Luhut stated.
In addition to battery materials manufacturing, Musk also intends to bring internet connectivity to remote areas of Indonesia through Starlink, Tesla’s satellite communications service, Luhut added.
Tesla has not yet responded to requests for comment, and Starlink could not be reached for further details.
Last week, Indonesia extended the qualification period for electric vehicle incentives, giving automakers an additional two years to benefit from the incentives. The move is part of Indonesia’s efforts to attract more investment and compete with countries like Thailand and India in developing their own EV industries as alternatives to China, the world’s largest EV producer.
President Joko Widodo expressed confidence in February that Tesla would invest in Indonesia, but the lack of an official announcement from the company thus far has raised doubts.
